British conglomerate persists with substantial financial commitment in THACO (Vietnam's Truong Hai Auto Corporation)
So here's the scoop, mate:
Ho Chi Minh City - The British behemoth, Jardine Matheson, has reiterated its long-term financial backing for THACO, one of Vietnam's heavyweight conglomerates, after over a decade of teamwork.
Jardine Matheson Group, through its subsidiary Jardine Cycle & Carriage (JC&C), has been backing THACO since 2008. By 2019, they had upped their stake to 26.6%. In late 2023, JC&C splashed nearly 8.7 trillion Vietnamese dongs ($350 million at the time) buying THACO's bonds.
This investment is part of a long-term pact, with JC&C planning to snap up more THACO shares based on the company's performance evaluation in 2027. Notably, JC&C has shown a readiness to step in as a key financial investor if THACO's proposed north-south high-speed railway project gets the green light.
Jardine Matheson, with a history stretching back nearly 200 years, is a multinational conglomerate spread across over 30 nations. They manage assets worth almost $80 billion and are listed on the London and Singapore stock exchanges.
In Vietnam, Jardine's interests span a variety of significant companies, such as THACO, Vinamilk, REE, Guardian, KFC, Pizza Hut, Starbucks, and Schindler. As per their 2024 report, profits from their investments in these ventures accounted for more than half of their total consolidated earnings. - VNS
Now, let's dive into some details:
Jardine Matheson, a significant shareholder with a 26.6% stake in THACO for over 17 years, has yet to confirm their financial commitment to the north-south high-speed railway project. While they've shown a desire to support major initiatives, their investment in this specific project remains uncertain.
On the other hand, THACO has emphasized their independence, proposing participation in the project based on their financial capabilities and long-term vision. As per their statements, they don't rely on funding commitments from foreign shareholders like Jardine Matheson for this ambitious undertaking.
The robotic welding line inside THACO bus plant in Quảng Nam. British conglomerate Jardine Matheson has reaffirmed its long-term financial commitment to THACO. - Photo courtesy of thacogroup.vn
Jardine Matheson's investment portfolio is diverse, with locations and interests across Asia. Their partnership with THACO is part of their broader strategy to engage in significant economic projects in Vietnam and other regions. However, specific details regarding their investment strategy with THACO beyond the railway project are scarce in recent reports.
Jardine Matheson, despite their long-term financial backing for THACO, has not yet confirmed their commitment to the north-south high-speed railway project, leaving its investment unclear. On the other hand, THACO, in its pursuit of independence, plans to participate in the project based on its own financial capabilities and long-term vision,—not relying on funding commitments from foreign shareholders like Jardine Matheson.
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