The consideration, which will be paid in cash, will comprise a subscription of new ordinary shares to be issued by ADG and the purchase of ordinary shares from ADG’s existing shareholders, including the four key shareholders which are the existing members of ADG’s board of directors, Vu; chief operating officer (COO) Pham Thi Thanh Tam; general director Dang Vu Toan; and vice-chairman and Ho Chi Minh City branch director Huynh Minh Vu. They will all continue to play active roles as ADG’s senior management, according to M1’s release.
ADG has a track record of 18 years in the value chain and has a network of 2,000 local agents and partners. It has operations in Vietnam’s four major cities, Hanoi, Ho Chi Minh City, Da Nang and Can Tho.
According to M1, ADG brings “advanced computing and storage solutions, high-performance networking solutions, as well as innovative computing and IT services” to the market through its network of over 20 global technology partners. ADG’s partners include CommScope, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Juniper Networks, Nvidia and Oracle.
The acquisition of a majority stake in ADG marks the telco’s entry into the Vietnamese market and allows it to diversify its portfolio and tap into new opportunities in the country’s technology sector.
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“This acquisition marks a significant milestone as we expand M1’s footprint into Vietnam and continue our expansion into the enterprise solutions space, following our acquisitions of AsiaPac in Singapore and Glocomp in Malaysia,” says Manjot Singh Mann, CEO of Keppel’s connectivity division and CEO of M1.
“Through this acquisition, M1 will be able to leverage ADG’s expertise and local presence in Vietnam to further enhance our ability to deliver innovative and comprehensive solutions to our customers in the country. M1’s investment in ADG will also augment Keppel’s suite of connectivity offerings for enterprises,” he adds.
ADG’s chairman and founder Vu adds: “We are excited to join forces with M1. This partnership will enable ADG to leverage M1’s cutting-edge technology and expertise, enhancing our ability to serve our customers and drive growth in the Vietnamese market.”
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The transaction is expected to be completed in the first quarter of 2025 subject to regulatory approvals and conditions.
Shares in Keppel closed at $6.48 on Oct 28.
