Vietnam’s major retail player VinGroup has announced that it will be selling eight million of its shares, nearly 80 per cent, in chartered capital of its logistics arm Phat Loc Express to Sagawa Express.
The offloading will see VinGroup exiting the logistics business. According to the Nikkei Asian Review, the sale to the Japanese-based SG Holdings company is valued at USD9 million, equivalent to the company’s 2015 sales revenue.
Phat Loc Express was founded in 2001 — originally known as Vinlinks — and is the fifth largest logistics firm in Vietnam. The company was fully acquired by VinGroup in 2015 after buying an 80 per cent controlling stakes from Hop Nhat International Express.
No reason behind the sale was disclosed, however, the sale is seen as a strategic move for VinGroup to strengthen its services with modern management software that the Japanese company would bring in. Prior to the transaction of sale, VinGroup and Sagawa signed an agreement to enhance the logistics capabilities of VinGroup.