According to information from the Department of Competition and Consumer Protection, which belongs to the Ministry of Industry and Trade, on June 10, 2021, this agency has received a complete and valid dossier of notification of economic concentration from Tiki Joint Stock Company (Tiki) and Tiki Global Pte. Ltd. (referred to as Tiki Global), which has a legal entity in Singapore. After the company issues more shares in the form of private placement, Tiki will transfer 90.5% of shares to Tiki Global. This is defined as a form of business acquisition under the Competition Law.
According to Mr. Ngo Hoang Gia Khanh, Deputy General Director of Corporate Development of Tiki, this activity is to serve the goal of the upcoming development phase, with the focus being on the initial public offering of shares. them (IPO) in a more favorable way.
“In Vietnam, if a foreign investor buys only 1 share, we also have to follow the prescribed procedures, which take 4-5 months to complete. This process is not convenient for a foreign investor. companies in Vietnam want to IPO in the international market,” Mr. Khanh cited.
In the near future, Tiki is planning to build a tech hub to attract and develop a team of engineers. Tiki will receive attractive policies when based in Singapore, typically of which is the policy of the Singapore Government to support paying up to 50% of salary for employees.
Currently, e-commerce is growing strongly, therefore, businesses in the industry are also experiencing fierce competition between domestic and foreign competitors. Each of the leading enterprises in the industry is experiencing accumulated losses of thousands of billions of dong. Especially for Vietnamese businesses like Tiki and Sendo, which are under a lot of pressure on capital.
According to the report of Vietnam e-commerce map of iPrice Insights (Malaysia), as of the first quarter of 2021, Tiki and Sendo both have an average monthly website traffic less than 1/3 of that of the country’s e-commerce platform. other than Shopee.
In the shareholder structure of Tiki as of March 2021, the domestic group still holds the majority with 51.6% shares. Specifically, Mr. Tran Ngoc Thai Son – founder, Chairman and CEO has 20.1%, VNG company has 20.2%, and other groups of domestic investors own 10.3%.