Nguyen Hoang Group, a leading educational services provider in Vietnam, has put on hold the sale of a minority stake that could value the private company at around $1 billion, according to Reuters.
The closely-held company had earlier hired JP Morgan as a financial adviser to find a buyer for the minority stake, estimated 10-20% or so.
As for the reason to pause, Reuters reported Thursday that bids "came short of its expectations" of the potential value. The news agency said Nguyen Hoang did not respond to its request for comment, while JPMorgan declined to comment.
However, the Ho Chi Minh City-based group may resume the sale process in the future, Reuters quoted two sources as saying but did not give their names because the matter is confidential.
The sale pause comes at a time when companies in Vietnam are facing difficulties in borrowing bank loans due to monetary tightening to rein in inflation and a narrowed corporate bond market given the government's tightened supervision. Bank lending interest rates have surged in the country and the Vietnamese dong weakens against the U.S. dollar.
Nguyen Hoang Group’s educational system includes national and international schools, offering teaching at levels ranging from kindergarten to Ph.D. The entire ecosystem has about 90,000 pupils and students.
The firm secured a $75 million loan from HSBC’s Female Entrepreneur Fund this August as the very first business in Vietnam to successfully register for the global fund.
HSBC Vietnam, which acted as mandated lead arranger and bookrunner (MLAB) in the deal, said Nguyen Hoang would use the funding for the expansion and construction of selected educational projects across Vietnam.
HSBC’s Female Entrepreneur Fund has set aside $1 billion to support female business owners around the world.