Latest news with #VFTP
The Star
2 days 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
Business Times
3 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
CNA
3 days ago
- Automotive
- CNA
VinFast founder to inject another $1.5 billion in exchange for R&D assets
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 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. ($1 = 26,230.0000 dong)
Bloomberg
3 days ago
- Automotive
- Bloomberg
VinFast to Spin Off R&D Assets in $1.5 Billion Deal With Founder
Vietnamese electric vehicle maker VinFast Auto Ltd. announced plans to spin off 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 $1.5 billion, according to a filing. The newly-formed company, Novatech Research and Development SJC, will be carved out from VinFast Trading and Production JSC, or VFTP, and will initially remain a direct subsidiary of VinFast, according to the statement. VinFast will own about 38% stake in Novatech, it added.
