VinFast Auto (VFS) to Shed $6.9 billion Debt Supported by Planned Sale of Factories

VinFast Auto Ltd (NASDAQ:VFS) is one of the 8 Best Climate Change Stocks to Buy According to Analysts. On May 16, Bloomberg reported that the electric vehicle maker is planning to sell two of its factories in Vietnam to support it shed around $6.9 billion in debt and obligations, in a bid to accelerate its return to profitability.

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According to the report, VinFast said it will essentially be debt-free, with only a small amount remaining after its restructuring. On May 12, the company announced that it would undergo a corporate restructuring that would separate its manufacturing assets held by the subsidiary VinFast Trading and Production JSC (VFTP) and transfer the unit to the buyer group led by Future Investment Research ​and Development JSC. The deal is valued at around $530 million.

Based on five analyst ratings compiled by CNN, 80% assigned a Buy rating to the stock. The average price target of the stock is $6.00, a 69.97% upside from the current price of $3.53.

VinFast Auto Ltd (NASDAQ:VFS) designs and manufactures electric vehicles. It offers electric scooters (e-scooters) and electric buses (e-buses). It provides an e-mobility ecosystem built around customers, community, and connectivity alongside new vehicle roll-out.

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