KKR-led Group Invests $650 Million in Vietnam’s Property Developer Vinhomes

A group led by KKR, an American global investment firm, has invested $650 million in Vietnam’s largest property developer Vinhomes JSC, marking the deal one of the biggest private equity investments in south-east Asia.

KKR, a firm that manages investments across multiple asset classes, has said the deal underscores the attractiveness of Vietnam as an investment destination with strong economic growth projected this year when the whole world is battling with the novel coronavirus.

Vietnam has recorded zero COVID-19 death so far despite having a population of around 100 million.

Ashish Shastry, co-head of private equity for KKR Asia Pacific and head of Southeast Asia, said in a press release, “We are truly honored to have the opportunity to invest in a successful, leading business like Vinhomes which is an integral part of the consumer services ecosystem within the Vingroup family.

“This investment exemplifies the type of platinum brands and management teams KKR looks to work within Southeast Asia. Today’s announcement further underscores our strong commitment to Vietnam, where KKR has been active and present for nearly a decade.”

KKR has $207 billion in assets under management.

Singapore state-owned company Temasek Holdings, a partner in the consortium with KKR, has bought a total 6% stake in Vinhomes, a subsidiary of Vingroup.
Cherishing the announcement, Vinhomes shares closed 7% higher on Tuesday at 74,900.00 dong. A similar upside is expected from KKR in the U.S. session as well.

Nguyen Dieu Linh, chairwoman of Vinhomes said in a press release, “We are pleased to welcome KKR as a shareholder in Vinhomes, and believe that the investment demonstrates the confidence of international investors in Vinhomes, Vingroup and the Vietnamese market.

“As a reputable, world-class institution, KKR’s expertise and proven track record of helping companies achieve long-term success will be valuable as we work together to enhance value for Vinhomes shareholders.”

KKR shares closed 3.29% higher at $30.11 on Monday. The stock price has recovered all of its coronavirus -induced losses and gained over 3% so far this year.

According to Tipranks, ten analysts forecast the average price in 12 months at $31.89 with a high of $39.00 and a low of $21.00. The average price target represents a 5.91% increase from the last price of $30.11.

It is good to buy at the current level as 100-day Moving Average and 20-200-day MACD Oscillator signal a strong buy opportunity; target $33 in the near-term with a stop loss of around $27.