Archos will pass under the Vietnamese flag

by bold-lichterman

The designer of tablets and smartphones Archos announced Monday evening that it had signed a strategic partnership with Vinsmart, a subsidiary of the Vietnamese group Vingroup, which should allow the Asian group to control up to 60% of the capital of the French company. The operation will first involve a capital increase with the issue of 27,460,000 new shares, which represent 29.5% of Archos’ capital, fully subscribed by Vingroup, then 71 million warrants of shares, convertible into as many Archos shares, the whole representing 60% of the company’s capital.

After Joyar, Archos’ new strategic partnership

The Vietnamese group will also obtain a number of seats on the board of directors of the French company proportional to its stake in the capital. The funds raised from this operation will allow Archos ” invest in a targeted manner in marketing for its mobile solutions in Europe ”, specifies the press release. The strategic agreement with Vingroup also provides for a ” significant research and development support in various fields ” and will allow Archos to have ” access to Vinsmart’s manufacturing units, thus benefiting from a significant production capacity ”. For its part, the Vietnamese group intends to take advantage of this agreement to ” develop (its) activities and increase its market share in Europe in the consumer electronics sector ”, adds the press release.

This is the second strategic partnership signed in a few months by the French company with an Asian group, Archos having already announced in October the entry into its capital of the Hong Kong group Joyar. The French manufacturer was in difficulty in 2018, with a turnover almost halved, to 63.3 million euros and a net loss which widened compared to 2017, to 23 million euros, on background of falling sales of smartphones, in an extremely competitive market, and refocusing on high added value businesses. Vingroup, a conglomerate present in real estate as well as healthcare services and mass distribution in particular, achieved in 2018 a turnover of 122.6 trillion Dong (4.7 billion euros), an increase of 37% over one year, and has nearly 45,000 employees.