VinFast Auto has revealed a strategic plan to spin off assets into a new entity, Novatech Research and Development Joint Stock Company (JSC), and subsequently sell the company’s shares in Novatech to VinFast Auto’s CEO and founder, Pham Nhat Vuong.
This move is designed to support the company’s long-term growth objectives.
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Novatech JSC will be spun off from VinFast Trading and Production JSC (VFTP) and established as a direct subsidiary of VinFast, holding assets associated with investment costs of completed research and development (R&D) projects.
VinFast Auto will retain a 37.642% portion of Novatech’s charter capital, ensuring control over 99.9% of voting rights.
Meanwhile, VFTP will maintain its role as a direct subsidiary, focusing on VinFast’s core electric vehicle manufacturing in Vietnam, and carrying out future R&D on new technologies and products.
Following the spin-off, VinFast plans to transfer all of its shares in the new entity to its CEO at around VND39.8tn ($1.6bn), which includes the fair value for the shares based on an independent third-party valuation, and an additional premium.
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By GlobalDataAfter the transfer, VinFast and its subsidiaries will lease back licences to the R&D intellectual property required for manufacturing VinFast products.
The completion of this restructuring is dependent on securing necessary approvals.
Recently, VinFast Auto inaugurated a new assembly plant in Tamil Nadu, India, marking a significant milestone in the company’s global expansion efforts.
The facility, situated in the Sipcot Industrial Park in Thoothukudi, is VinFast’s third vehicle assembly facility to go into operation globally.
In June, VinFast opened its new EV manufacturing plant in Hà Tĩnh, Vietnam.
Additionally, in the following month, VinFast Auto issued VND2.5tn ($96m) in bonds through its VIF12502 bond series, as part of its ongoing strategy to enhance its global market presence.
