MOBILE network operator M1 is acquiring a 70 per cent stake in Vietnam-based IT solutions provider, ADG National Investment and Technology Development, for a total purchase consideration of 719.9 billion dong (S$37.8 million).
It involves subscribing for new ordinary shares to be issued by ADG, as well as purchasing ordinary shares from all existing shareholders including members of ADG’s board, said M1’s parent company Keppel on Tuesday (Oct 29).
The purchase consideration will be paid through M1’s wholly owned subsidiary, AP Tech.
Completion of the transaction is slated for the first quarter of 2025, subject to approval and merger-filing clearance by the Vietnamese authorities.
It is not expected to have a material impact on Keppel for the current financial year.
Post completion of the acquisition, the remaining 30 per cent stake in ADG will be held by existing shareholders including its chairman and founder, Vu Minh Tuan.
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Keppel said Tuan – along with other members of ADG’s board – will continue to play active roles as senior management of the company.
As at end-September 2024, ADG had an unaudited net asset value and book value of 151 billion dong.
Acquiring ADG will mark M1’s strategic entry into the Vietnamese market, said Keppel.
The group noted the IT solutions provider’s track record of 18 years in the value chain; its network of more than 2,000 local agents and partners; and operations in the four major cities of Hanoi, Ho Chi Minh City, Da Nang and Can Tho.
“Significantly, ADG brings advanced computing and storage solutions, high-performance networking solutions, as well as innovative computing and IT services to the market through its robust network of over 20 global technology partners,” added Keppel.
Dell Technologies, Hewlett Packard and Nvidia count as some of the names among these technology partners.
Manjot Singh Mann, M1 chief executive and Keppel’s CEO of connectivity, believes M1’s investment in ADG will also augment Keppel’s suite of connectivity offerings for enterprises.
“Through this acquisition, M1 will be able to leverage ADG’s expertise and local presence in Vietnam to further enhance our ability to deliver innovative and comprehensive solutions to our customers in the country,” he said.
Shares of Keppel closed on Friday S$0.03 or 0.5 per cent lower at S$6.48.
