FPT to sell retail, trading units
Software giant FPT is planning to seek investors for its FPT retail and trading segment this year, according to FPT’s website.
Viet Capital Securities and Japanese-owned securities firm Nomura have been hired as consultants to minimise its investment in retail and distribution operations by the end of this year, Deputy CEO Nguyen The Phuong said.
The business performance of retail and distribution segment of FPT is very good. By selling divisions of FPT Retail and FPT Trading, the company will be able to focus more on IT and telecom services, which are seeing big opportunities, Phuong said.
FPT now owns an 84.27% stake in FPT Retail and 100% of FPT Trading.
The move will help the company find suitable investors with financial capacity and experience who can help expand its business, he said.
FPT Retail reported a 335% jump in annual net profit in 2015 with 252 stores after four years in operation, the company said. In 2015, FPT Retail, which operates digital store chain FPT Shop and Apple-authorised stores F.Studio, said that FPT has always been focussing on developing the retail business.
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As the group’s fastest growing subsidiary, FPT Retail accounted for 19.6% of its revenue last year. Figures from the company showed the subsidiary posted revenues of more than VND7.83 trillion (US$346.76 million) last year, up 148% from 2014.
FPT Retail expects to post revenues of VND10 trillion (US$442.57 million) this year.
The FPT’s Board of Directors has set its goal this year to make the technology and distribution segment the key engine of the group’s growth.
It has also planned to further invest in telecommunications infrastructure and continue its R&D activities. The total revenue from telecom, distribution and retail is expected to grow by over 20% in 2016.
According to FPT’s chairman Truong Gia Binh, the shareholder meeting last year agreed that the target of reducing its ownership in the retail and distribution segment was aimed at helping FPT further increase investment in its core business that includes information technology and telecoms to take advantage of the available opportunities.
By doing so, the move will help FPT seek eligible investors with strong financials, experience and international governance, to accelerate the development of the distribution and retail segment.
