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VinFast Auto to Spin Off Assets in $1.6 Billion Deal
ByAinvest
Thursday, Aug 14, 2025 6:52 am ET1min read
VinFast Auto plans to spin off certain assets in a $1.6 billion deal. The Vietnamese automaker aims to focus on its electric vehicle business and reduce its debt. The spin-off will include its retail business, property, and other non-core assets. The deal is expected to be completed in the fourth quarter of 2025.
VinFast Auto Ltd. (NASDAQ: VFS), a leading Vietnamese automaker, has announced plans to spin off certain assets in a significant deal valued at approximately US$1.6 billion. The move aims to streamline the company's operations and reduce its debt by focusing on its core electric vehicle (EV) business. The spin-off is expected to be completed in the fourth quarter of 2025.According to a recent Form 6-K filing with the U.S. Securities and Exchange Commission (SEC), VinFast plans to separate its retail business, property, and other non-core assets into a new entity, which will be sold to the company's founder and CEO, Mr. Pham Nhat Vuong. The new entity, Novatech Research and Development Joint Stock Company, will hold certain assets related to completed research and development projects.
The spin-off will involve the transfer of all shares in Novatech to Mr. Pham for a total consideration of approximately US$1.6 billion. The valuation of the transferred shares is estimated to be around US$679 million, with an additional premium. VinFast will retain 37.642% of the charter capital of Novatech, representing 99.9% of the voting rights. The intellectual property rights over any research and development assets held by Novatech will be leased back to VinFast after the transfer.
The spin-off is part of a broader restructuring effort that includes amendments to share exchange agreements with Vingroup, the parent company of VinFast. Vingroup currently holds preference shares in VFTP, a subsidiary of VinFast, and will have the right to exchange these shares for ordinary shares of VinFast or cash consideration.
VinFast's move to focus on its EV business aligns with its mission to create a green future for everyone. The company produces a range of electric SUVs, e-scooters, e-bikes, and e-buses and exports them to key markets across Asia, North America, and Europe.
[1] https://www.stocktitan.net/sec-filings/VFS/6-k-vin-fast-auto-ltd-current-report-foreign-issuer-7a7b877709c6.html
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