Latest news with #Novatech
The Star
a day ago
- Automotive
- The Star
VinFast to spin off assets in US$1.5bil deal with founder
Pham Nhat Vuong, Vietnam's richest man with a US$11.1 billion fortune, has pumped more than $2 billion of his own money into VinFast and has said he's willing to support the company until his cash runs out. - Reuters HANOI: VinFast Auto Ltd is poised to raise about US$1.5 billion by selling certain research and development assets to its founder, a move that will help shore up its finances as it plans an ambitious expansion. The Vietnamese electric vehicle maker announced a plan to spin off part of its R&D unit to a newly formed company, known as Novatech Research and Development SJC, according to a filing made to the US Securities and Exchange Commission on Thursday. Novatech will hold assets related to costs of completed research and development projects. After the creation of the new entity, VinFast will sell all of its shares in Novatech to its founder and Chief Executive Officer Pham Nhat Vuong for about 39.8 trillion dong ($1.5 billion), according to the statement. "This move addresses funding requirements for operations and expansion as the company continues to report losses,' according to Ken Foong, an analyst with Bloomberg Intelligence. Vuong, who is Vietnam's richest man with a $11.1 billion fortune according to the Bloomberg Billionaires Index, has pumped more than $2 billion of his own money into VinFast and has said he's willing to support the company until his cash runs out. "The plan highlights the chairman's ongoing support for VinFast - complementing the grants he's made since 2023,' said Hong Luu, a senior manager of the research department at Vietcap Securities. "Meanwhile VinFast's operations will remain unchanged,' she said. VinFast said in the statement that the transaction "reflects a further effort by the founder to facilitate VinFast's long-term growth.' VinFast is racing to establish a foothold in price-sensitive Asia amid intense competition and ongoing losses in its international business. It inaugurated a factory in the Indian state of Tamil Nadu earlier this month which will have an initial production capacity of 50,000 vehicles a year. It expects to open a plant in Indonesia by October. The company posted a loss of $3.2 billion last year. Novatech will be carved out from VinFast Trading and Production JSC, or VFTP, and will initially remain a direct subsidiary of VinFast, with the EV maker holding about 38% stake, according to the statement. The new company will have a charter capital of about 105.8 trillion dong and Vingroup JSC will own a roughly 62.3% stake, according to a separate statement on Vingroup's website. VFTP will remain a direct subsidiary of VinFast and continue to operate its core EV manufacturing business in Vietnam and conduct future research and development on new products and technologies, according to the filing. Shares of VinFast fell 2.3% to close at $3.46 per share on Thursday trading in the US. - Bloomberg
Forbes
a day ago
- Automotive
- Forbes
Vietnam's EV Maker VinFast To Sell R&D Assets To Billionaire Founder For $1.5 Billion
VinFast Auto is spinning off its research and development assets and then selling it to founder Pham Nhat Vuong for $1.5 billion as the tycoon deepens his investments in the loss-making electric vehicle maker. The Nasdaq-listed company will form a new entity, Novatech Research and Development to house the R&D assets, which would then be sold to Pham, according to a regulatory filing released on Thursday. After the completion of the deal, Novatech will continue to run VinFast's manufacturing operations in Vietnam, and help develop new products and technologies. 'The transaction reflects a further effort by the founder to facilitate the company's long-term growth,' VinFast said in the statement. The deal would be the latest cash injection by Pham to make VinFast a viable player in the global EV market. The company has been opening dealerships in Asia, Europe, the Middle East and the U.S. Earlier this month, it began producing cars at a factory in the southern Indian state Tamil Nadu. In the first quarter of this year, the company's net loss widened to $712 million from $617 million a year ago amid tougher competition in the global EV market. In 2024, VinFast, which aims to breakeven late next year, sold 97,000 EVs, mostly in Vietnam. With a real-time net worth of $12.7 billion, Pham got his start in 1993 when he established an instant noodle business in Ukraine. He sold the business to Nestle in 2010 and used the money to launch Vingroup. Since then, Vingroup has grown into a major conglomerate with businesses in real estate, retail, healthcare, education, automobiles, and technology. Earlier this month, Vingroup announced it will invest around 374 trillion dong ($14 billion) to develop a port and logistics hub outside of Hanoi where VinFast manufactures EVs in a 335-hectare factory complex.
CTV News
2 days ago
- Automotive
- CTV News
VinFast founder to inject another US$1.5 billion in exchange for R&D assets
Workers assemble a car at the Vinfast electric vehicle plant in Thoothukudi, in the southern Indian state of Tamil Nadu. (AP Photo/ Rafiq Maqbool) VinFast's founder Pham Nhat Vuong has agreed to buy the EV maker's research and development arm for US$1.52 billion, his latest cash injection into the loss-making Vietnamese company as it strives to break even by the end of 2026. The deal will involve Novatech Research and Development JSC, a Vietnam-incorporated entity, being carved out of VinFast Trading and Production JSC (VFTP), its domestic manufacturing arm, VinFast said in a filing to the U.S. Securities and Exchange Commission. Novatech will hold investment costs tied to completed R&D projects, while VFTP will continue to lead EV production and future research in Vietnam. VinFast, which debuted on the Nasdaq in 2023, has faced challenges including weak consumer demand and stiff competition. It made a net loss of $712.4 million for the first quarter, although revenue jumped 150 per cent to $656.5 million. VinFast's shares were up 1.4 per cent to $3.59 in pre-market trade. Since its launch in 2017, the company has relied heavily on support from Vuong, who holds about 98 per cent of shares in VinFast and its parent company Vingroup where he serves as chairman. The transfer of shares in Novatech to Vuong, valued at nearly 40 trillion dong ($1.52 billion), comprises a fair value assessment of 17.25 trillion dong plus a premium. Intellectual property linked to Novatech's assets will be leased back to VinFast for manufacturing purposes as needed. VinFast has said it has completed the development of its first generation of EVs. Research and development costs were $81.2 million in the first quarter of 2025, down 22.3 per cent year-on-year. The EV maker has set a delivery target of 200,000 cars for 2025, more than double its deliveries in 2024. Most of VinFast's deliveries are in the Vietnamese market. (Reporting by Akash Sriram in Bengaluru and Phuong Nguyen in Hanoi. Editing by Shilpi Majumdar and Mark Potter)
Yahoo
2 days ago
- Automotive
- Yahoo
VinFast founder to inject another $1.5 billion in exchange for R&D assets
(Reuters) -VinFast's founder Pham Nhat Vuong has agreed to buy the EV maker's research and development arm for $1.52 billion, his latest cash injection into the loss-making Vietnamese company as it strives to break even by the end of 2026. The deal will involve Novatech Research and Development JSC, a Vietnam-incorporated entity, being carved out of VinFast Trading and Production JSC (VFTP), its domestic manufacturing arm, VinFast said in a filing to the U.S. Securities and Exchange Commission. Novatech will hold investment costs tied to completed R&D projects, while VFTP will continue to lead EV production and future research in Vietnam. VinFast, which debuted on the Nasdaq in 2023, has faced challenges including weak consumer demand and stiff competition. It made a net loss of $712.4 million for the first quarter, although revenue jumped 150% to $656.5 million. VinFast's shares were up 1.4% to $3.59 in pre-market trade. Since its launch in 2017, the company has relied heavily on support from Vuong, who holds about 98% of shares in VinFast and its parent company Vingroup, where he serves as chairman. The transfer of shares in Novatech to Vuong, valued at nearly 40 trillion dong ($1.52 billion), comprises a fair value assessment of 17.25 trillion dong plus a premium. Intellectual property linked to Novatech's assets will be leased back to VinFast for manufacturing purposes as needed. VinFast has said it has completed the development of its first generation of EVs. Research and development costs were $81.2 million in the first quarter of 2025, down 22.3% year-on-year. The EV maker has set a delivery target of 200,000 cars for 2025, more than double its deliveries in 2024. Most of VinFast's deliveries are in the Vietnamese market. ($1 = 26,230.0000 dong) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Times
2 days ago
- Automotive
- Business Times
VinFast to spin off R&D assets in 39.8 trillion dong deal with founder
[HANOI] Vietnamese electric vehicle maker VinFast Auto announced plans to spinoff part of its research and development unit into a newly formed company, which will then be sold to the automaker's founder in a deal worth about US$1.5 billion, according to a filing. The newly-formed company, Novatech Research and Development, will be carved out from VinFast Trading and Production (VFTP) and will initially remain a direct subsidiary of VinFast, according to the statement. VinFast will own about 38 per cent stake in Novatech, it added. Novatech will hold assets related to costs of completed research and development projects. After the creation of the new entity, VinFast will sell all of its shares in Novatech to its founder and chief executive officer Pham Nhat Vuong for about 39.8 trillion dong (US$1.5 billion), according to the statement. The transaction 'reflects a further effort by the founder to facilitate VinFast's long-term growth,' the statement said. VFTP will remain a direct subsidiary of VinFast and continue to operate its core EV manufacturing business in Vietnam and conduct future research and development on new products and technologies. Vuong, who is Vietnam's richest man with a US$10.9 billion fortune according to the Bloomberg Billionaires Index, has pumped more than US$2 billion of his own money into VinFast and has said he's willing to support the company until his cash runs out. VinFast earlier this month inaugurated a factory in the Indian state of Tamil Nadu which will have an initial production capacity of 50,000 vehicles a year. It expects to open a plant in Indonesia by October. In 2024, VinFast delivered 97,399 EVs globally and expects to at least double that this year, with 200,000 deliveries in Vietnam. BLOOMBERG
