Vietnamese leading multi-business group Thaco is looking for an investor into its automobile arm Thaco Auto with a 10% stake, Thaco vice chairman Nguyen Hung Minh said.
Thaco, founded by Vietnamese tycoon Tran Ba Duong in 1997, is in talks with Ho Chi Minh City Securities Corp. (HSC) as a financial advisor to explore the potential sale in Thaco Auto after receiving interests from domestic and foreign investors, Minh said late Wednesday.
Negotiations are underway and no decisions have been made, he said, adding that the private conglomerate expects to complete the deal this year.
Minh mentioned this 10% stake after Reuters quoted the same day one of its two sources as saying the sale is likely for a 20% stake. Both sources quoted by Reuters for this possible deal declined to be named as the matter is private.
Thaco Group was founded by Duong in 1997 in Dong Nai province bordering Ho Chi Minh City. It started as a used vehicles trader and repairer. Its current six business areas are automobile production and trading, mechanical engineering, agriculture, investment and construction, service and trading, and logistics.
Thaco Auto, whose production hub (named Thaco Chu Lai, which is also Thaco Group’s manufacturing hub) is in Nui Thanh district, the central province of Quang Nam, manufactures and distributes vehicles including passenger cars, trucks, buses, and motorcycles from brands ranging from Kia, Mazda, Peugeot, BMW, MINI, and Iveco to its own Thaco brand of buses. It has more than 400 showrooms and service centers across the country.
South Korean carmaker Kia started manufacturing in Vietnam in 2004 in collaboration with Vietnamese carmaker Thaco. The Thaco Kia manufacturing facility is inside Thaco Chu Lai.
The large-sized complex also makes Peugeot cars and motorcycles. BMW announced in December 2022 that Thaco will produce the BMW 3 Series, BMW 5 Series, BMW X3 and BMW X5 car models at Thaco Chu Lai.