Hanoi (VNS/VNA) - Vingroup JSC has announced itwill sell its stake in Vincom Retail and no longer be the parent company of thenationwide retail centre system.

Vietnam's largest private conglomerate, chaired by billionaire PhamNhat Vuong, said that its Board of Directors finalised an agreement to fullydivest its contributed capital in SDI Trading Development and Investment JSC.

SDI currently holds over 99% of the charter capital of SadoTrading Commercial JSC, a major shareholder in Vincom Retail JSC.

The transaction is anticipated to be conducted between March andthe third quarter of 2024. Following the completion of the deal, SDI, SadoCompany and Vincom Retail will no longer operate as Vingroup units. Vingroupnow holds 18.82% of the voting rights in Vincom Retail.

However, it will continue to manage the activities of the retailcentres on behalf of Vincom Retail.

Nguyen Viet Quang, Vice Chairman of the Board of Directors and CEOof Vingroup, said that despite Vincom Retail's successful operations and annualprofits reaching billions of VND, the decision was made as it is a crucial timefor Vingroup to concentrate its resources on robust development.

The representative also clarified that there are no plans toacquire the prime locations of the commercial centres controlled by Vincom inorder to convert them into residential projects.

The shopping centres will be developed according to theirdesignated plans, with a clear purpose of commercial and service usage.

There will be no changes in the organisational structure,management and operation model of Vincom Retail, the CEO added.

Vingroup will sign a management contract with Vincom Retail,thereby supervising the activities of the shopping centres and ensuring therights and benefits of tenants and store owners within the centres.

Sado holds the largest share in Vincom Retail JSC (VRE), owning943.2 million shares, which is equivalent to 40.5% of the company's chartercapital and 41.51% of its voting rights.

Sado acquired VRE shares starting from February 2021, followingthe merger with South Hanoi Housing and Urban Development Corporation. In April2021, Sado officially became the largest shareholder of Vincom Retail byreceiving an additional transfer of 751 million VRE shares.

In 2023, Vincom Retail achieved net revenue of over 9.79 trillionVND and profit after tax of 4.4 trillion VND, up 33% and 58.8% over theprevious year, respectively./.