SK denies $1b investment in Vietnam’s Vingroup

SK has denied local reports that the conglomerate is gearing up for a $1 billion investment in Vietnam’s largest private company Vingroup.

“We have been reviewing a number of investment cases, but there is no such case confirmed yet,” the company’s spokesman said.

News reports said the nation’s third-largest conglomerate will soon invest $1 billion to acquire shares of Vingroup through its overseas investment arm SK South East Asia Investment. Based in Singapore, SK’s investment unit was launched in August, with operating funds coming from five group affiliates, including SK Telecom and SK hynix.

The five affiliates have invested $100 million each in SK South East Asia Investment, raising market expectations that the half-billion-dollar wad of cash is aimed at Vingroup. SK is likely to forge a consortium with financial investors to pay the rest, reports have said, quoting market insiders.

The market rumor of SK’s investment in Vingroup has been circulating since last month, soon after Vingroup announced a plan to issue shares through private placement, offloading 250 million shares, or 7.8 percent, to up to five foreign investors. The minimum price was pegged at $4.30 per share.

By Cho Chung-un (christory@heraldcorp.com)