Singaporean firms become restaurant chain Golden Gate’s major shareholder
A 35.95% stake of Golden Gate, the operator of a leading restaurant chain in Vietnam, has been sold to a group of three Singaporean investors, while major shareholder Prosperity Food Concepts Pte Ltd said “good bye” to the company.
Golden Gate on Thursday sent a report to Vietnam’s State Securities Commission, and announced the transaction.
Accordingly, the 32.92% shareholding of Singaporean-backed Prosperity Food Concepts and a 3.03% stake owned by Golden Gate’s two co-founders will be handed over to the new investors, namely Temasek, Seatown Private Capital Master Fund and Periwinkle Pte Ltd.
An M&A expert said this is an important merger and acquisition (M&A) transaction for Golden Gate and the Vietnamese market. “Given that many food and beverage (F&B) businesses and restaurants have closed or gone bankrupt due to the Covid-19 pandemic, the deal could be viewed as a sign that Vietnam’s F&B sector is still thriving.”
Hoang Quoc Khanh, Director of Operations at Golden Gate said the total transfer value was not disclosed under the parties’ agreement. “However, the fact that three major Singaporean investors chose Golden Gate to invest amid the Covid-19 outbreaks in Vietnam demonstrates the company’s high development potential.”
According to International Investment Valuation and Consulting JSC, a Golden Gate share was priced at over VND1.95 million ($85) on August 30, 2021, equivalent to a market capitalisation of about VND14.85 trillion (about $649 million). Therefore, Singaporean investors could have to shell out about $234 million for a nearly 36% stake in Golden Gate.
The new group of shareholders will join Golden Gate’s board of directors and assist the company in developing business strategies and establishing a modern corporate governance system in accordance with global standards, Khanh said.
“There are numerous reasons why Golden Gate attracts these investors' interest. When the pandemic was raging, the company responded extremely quickly to the adverse circumstances. As Vietnam is to reopen its economy, the growth potential of the F&B industry, particularly Golden Gate as the market leader, is quite positive,” he added.
During the pandemic, Golden Gate focuses on care programs, incentives for close members, and improving customer experiences with The Golden Spoon app. The company also promoted the development of online sales channels through the G-delivery and Icook as well as integrating forms of payment through e-wallets and cards etc. to assist customers in ordering its products and enjoying at home, especially during the period when the restaurant chain is forced to close due to social distancing orders.
Despite the fact that the company's restaurant chain had to close 35% of the working days in 2021, Golden Gate still earned VND3.32 trillion ($145.1 million) last year, equivalent to 73% of its revenue in 2020.
One of the largest F&B firms in Vietnam, Golden Gate now operates over 400 restaurants across 40 cities and provinces, including numerous well-known culinary brands, mostly for hotpot and grilling, such as Kichi-Kichi, Gogi, Sumo BBQ, Manwah and Hutong.
Temasek, one of Golden Gate’s new investors, had a total asset portfolio of $283 billion by the end of March 2021, with Asia’s investments accounting for 64%. In Vietnam, the Singaporean government-owned investment company has made long-term investments in a number of companies such as VNG, Scommerce and Vinhomes. Golden Gate is one of the F&B enterprises of Vietnam receiving the high-profile company’s investments.
- Read More
Latvian man sentenced in Vietnam for operating loan shark ring with 1,380% interest rate
Aigars Plivěs, a Latvian national, on Monday was sentenced to two years and nine months in prison for operating three companies that offered loans with high interest rates of 401-1,379.7% per year, earning illicit gains of more than VND4.15 trillion ($163 million).
Society - Wed, December 18, 2024 | 10:37 pm GMT+7
April Tea Shop to close down amid F&B sector woes
The Tiem tra thang 4 (April Tea Shop), a popular check-in and beverage destination for young people in Ho Chi Minh City, has announced it will shut down on December 25, ending a five-year journey.
Companies - Wed, December 18, 2024 | 9:56 pm GMT+7
New tourism trends seen in Thailand
Thailand is gearing up to attract more luxury and high-spending travellers in a bid to stimulate post-pandemic expenditure.
Southeast Asia - Wed, December 18, 2024 | 9:37 pm GMT+7
Thailand to allow more foreign workers in business
The Thai cabinet has approved in principle increasing the number of foreign workers at businesses to deal with labour shortage, according to Thai government spokesman Jirayu Huangsab.
Southeast Asia - Wed, December 18, 2024 | 9:25 pm GMT+7
Indonesia to build first nuclear power plant
Indonesia is planning to build its first nuclear power plant on Kelasa island in Bangka Belitung province.
Southeast Asia - Wed, December 18, 2024 | 9:18 pm GMT+7
Thailand announces research and innovation direction for 2025
The recent “Research X Innovation 2025” conference examined global trends and announced Thailand’s research and innovation direction for 2025.
Southeast Asia - Wed, December 18, 2024 | 8:49 pm GMT+7
Malaysia eyes to become ASEAN’s next-generation vehicle hub
The Malaysian Investment Development Authority (MIDA) has partnered with DRB-Hicom Bhd and Zhejiang Geely Holding Group Co. Ltd. to develop the Automotive Hi-Tech Valley (AHTV) in Tanjung Malim, Perak, with a goal of turning the country into ASEAN’s hub for next-generation vehicles (NxGV) and energy-efficient vehicles.
Southeast Asia - Wed, December 18, 2024 | 8:46 pm GMT+7
Thai IP developer Amata eyes clean energy cooperation with northern Vietnam province
Amata Group of Thailand on Wednesday recommended the northern province of Quang Ninh foster cooperation in clean energy development in the time to come.
Investing - Wed, December 18, 2024 | 4:54 pm GMT+7
Czech's Sev.en Global Investments to make Europe's largest energy investment in Vietnam
Czech-based Sev.en Global Investments, a multi-sector business, will expand its footprint to Asia, with Vietnam as a key market, the firm announced Wednesday.
Energy - Wed, December 18, 2024 | 3:43 pm GMT+7
Vietnam's Mekong Delta has immense opportunities for herbal-based medicine development: exec
The government should prioritize planning for designated growing areas and support product promotion to advance the development of products derived from medicinal herbs, said Pham Thi Xuan Huong, general director of OPC Pharmaceutical JSC.
Companies - Wed, December 18, 2024 | 2:15 pm GMT+7
Petrovietnam seeks WB support in offshore wind energy
State-owned Petrovietnam has called on the World Bank to provide support, including capital, to help with green energy projects, especially offshore wind power.
Energy - Wed, December 18, 2024 | 1:36 pm GMT+7
Masan High-Tech Materials exits its downstream business H.C. Starck
Vietnam's Masan High-Tech Materials on Wednesday announced the successful closing of the sale of 100% of H.C. Starck Holding (Germany) GmbH to Mitsubishi Materials Corporation Group.
Companies - Wed, December 18, 2024 | 1:24 pm GMT+7
New stock trading system KRX must come on stream in 2025: regulator
The State Securities Commission (SSC) of Vietnam has demanded stock exchanges and related entities to launch the new stock trading system KRX in 2025.
Finance - Wed, December 18, 2024 | 11:40 am GMT+7
Hong Kong-invested battery maker GPPD raises Vietnam investment to $35 mln
Singapore-incorporated GPPD Pte. Ltd., a subsidiary of Hong Kong-based Gold Peak Technology Group Limited, has increased its investment in Vietnam’s southern province of Binh Phuoc to $34.6 million.
Industries - Wed, December 18, 2024 | 11:17 am GMT+7
Vietnam interest rate unlikely to fall further: experts
Interest rates in Vietnam are unlikely to decrease further and may even rise slightly in the near future, according to Pham The Anh, chief economist at the Vietnam Economic and Strategy Research Center (VESS).
Economy - Wed, December 18, 2024 | 10:04 am GMT+7
Vietnam an important partner of Guangdong-Hong Kong-Macao Greater Bay area: Sunwah Group chairman
Through Hong Kong, an international financial center, Vietnamese businesses can more easily and effectively access the Guangdong-Hong Kong-Macao Greater Bay, says Sunwah Group chairman Jonathan Choi.
Economy - Wed, December 18, 2024 | 8:17 am GMT+7
- Consulting
-
Rethinking resilience: How typhoon Yagi redefines supply chain strategies in northern Vietnam
-
Remove roadblocks to lure foreign investment into Vietnam: HSBC exec
-
AI can be a game changer for Vietnam tourism
-
In trade and investment, ASEAN and China are better together
-
Investment opportunities in LNG-to-power projects in Vietnam
-
Pepper prices 2024: will the dream of 'black gold' repeat?