VNG Group JSC, a leading technology firm in Vietnam, will buy back a majority stake in VTH Software Development JSC for VND480 billion ($18.3 million), after its Singapore-based partner STT GDC withdrew from a planned data center project on the site of VTH.

In a filing with the stock market last week, VNG said it will full control of VTH, which owned a land plot in Ho Chi Minh City designated for a data center project.

The transaction reverses a deal made in May 2024, when two Singapore entities, STT Vietnam DC Pte. Ltd. and STT Vietnam SPV Pte. Ltd. (referred to jointly as STT GDC) invested in VTH by subscribing to newly issued shares. The investment gave STT GDC a 65 percent stake and reduced VNG’s ownership from 100 percent to 35 percent.

The partners intended to develop a data center on the plot of about 2.5 hectares in Tan Thuan Export Processing Zone, held by VTH under a land-use rights certificate expiring on September 23, 2041.

According to the disclosure, STT GDC later concluded that the project no longer aligned with its investment strategy and commercial objectives. The remaining land-use term was not optimal for the long-term investment and operation of a hyperscale data center.

VNG will acquire 33.4 million ordinary shares, representing 65 percent of VTH’s charter capital, from STT GDC. VNG expects to complete the transaction in the third or fourth quarter of 2026, subject to governmental and regulatory approvals, including merger control clearance.

Following completion, VNG will hold approximately 99.99% of VTH’s charter capital and voting rights, making VTH a direct subsidiary of the company once again.

With the latest move, VNG said the site can serve its long-term plans, including the expansion of its office campus, employee sports-recreational facilities, an e-sports center, and other business initiatives.

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