Công ty TNHH VinFast Auto công bố ý định mua lại Công ty Cổ phần Giải pháp Năng lượng VinES

VinFast Auto Ltd. announced its intention to acquire VinES Energy Solutions Joint Stock Company

On October 11, 2023, VinFast Auto Ltd. announced its intention to acquire VinES Energy Solutions Joint Stock Company. A copy of that announcement is furnished as Exhibit 99.1 to this Report on Form 6-K.

EX-99.1 2 d535412dex991.htm EX-99.1 Exhibit 99.1

VINFAST ANNOUNCES INTENTION TO ACQUIRE VINES ENERGY SOLUTIONS JOINT STOCK COMPANY

Singapore, October 11, 2023 – VinFast Auto Ltd. (Nasdaq: VFS) (“VinFast”) announced its intention to acquire 99.8% stake in VinES Energy Solutions Joint Stock Company (“VinES”). Following the acquisition, VinFast will be able to control its battery technology – an important component of electric vehicles, and be fully integrated in the production value chain, improving its competitive advantage.

The acquisition of VinES will transition VinFast into a fully integrated battery-electric-vehicle (“BEV”) player and accelerate our development capabilities across three key pillars: vehicle development, electrical & electronics, and battery.

This strategic move solidifies VinFast’s commitment to customers in its continuous enhancement of product performance and efficiency.

The acquisition is expected to bring many strategic benefits to VinFast in the long-term, including:

• Securing supply of battery,

• Battery cost optimization: VinFast expects at least 5-7% savings on battery costs for the combined business, and

• Access to external partners and internal research and development (“R&D”) on latest battery technologies to increase competitive edge for VinFast vehicles.

In the short term, however, VinFast’s costs are expected to increase for battery R&D and factory operations.

VinES is a member company of the Vingroup ecosystem, with legal capital of VND 6,500 billion ($270 million). The company operates in the fields of research, development and production of high-quality lithium-ion batteries for electric vehicles, energy storage systems and other commercial applications. VinES also cooperates with leading global battery technology partners and other parties in the vertical supply chain of battery components and raw materials critical to battery production and seeks to become a comprehensive energy solution provider.

As of September 30, 2023, VinES had consolidated total assets of approximately VND 17 trillion ($711 million) and consolidated net assets of approximately VND4.4 trillion ($183 million) 1 .

1 In accordance with the consolidated financial statements of VinES and its subsidiary as of September 30, 2023 which were prepared in accordance with the Vietnamese Accounting Standards and the Vietnamese Enterprise Accounting System

After the acquisition, VinFast will acquire all rights and obligations over VinES’ assets, including intellectual property related to battery cells and battery packs, together with VinES’ manufacturing facilities, technology, partnerships, as well as contracts with suppliers. VinFast has always had a strategic partnership with VinES intended to cover the full spectrum of battery R&D, manufacturing, testing, performance and cost optimization and battery recycling once VinES fully ramps up its operations. The acquisition of VinES with its battery technology and modern manufacturing facilities is an important milestone for VinFast in achieving the full integration of its manufacturing capabilities and is expected to promote VinFast’s competitiveness in the global electric vehicle market.

VinFast will acquire VinES from its Chairman, Mr. Pham Nhat Vuong, for no consideration other than assuming borrowings of approximately VND11,122 billion ($462 million) which VinES has outstanding to finance the construction of its manufacturing facilities and its operations. To support the ramp up for VinES until its operations stabilize, Mr. Pham will agree to provide grants to VinFast for all interest payments relating to these existing VinES borrowings up to 2027.

Mdm. Le Thi Thu Thuy, Vice Chairwoman of Vingroup and Global CEO of VinFast said: “The acquisition of VinES will help VinFast control our battery technology and supply chain, thus optimizing operating expenses and enriching technology content in our electric vehicles. This is also an important step towards developing and controlling an integrated supply chain as well as comprehensive manufacturing system to further strengthen our competitiveness.”

VinFast’s Board of Directors have approved the company’s plans to acquire VinES and parties are proceeding expeditiously to complete the acquisition.

As previously announced in April 2023, VinFast entered into a capital funding agreement with our Chairman, Mr. Pham Nhat Vuong and certain shareholders that provides a framework for VinFast to receive grants of up to approximately $1 billion in aggregate from the Chairman and the other shareholders; Vingroup, VinFast’s parent company, also committed to provide a non-refundable grant of up to approximately $500 million and a loan of up to approximately $1 billion to VinFast to support its growth and global expansion plans.