Thai conglomerate to purchase Vietnam’s packaging firm

TCG Solutions Pte, a subsidiary of Thai conglomerate Siam Cement Group (SCG), has planned to buy over 12 million shares or 94.11% stake of Bien Hoa Packaging (Sovi).
December 18, 2020 | 14:38
ambassador visits ovs in thailands northeastern provinces Ambassador visits OVs in Thailand's northeastern provinces
celebrating the 93rd anniversary of thailands national day affirming strong thailand vietnam ties despite covid 19 pandemic Celebrating the 93rd anniversary of Thailand’s National Day: affirming strong Thailand-Vietnam ties despite COVID-19 pandemic
world breaking news today december 3 thai prime minister acquitted of ethics breach retains post World breaking news today (December 3): Thai prime minister acquitted of ethics breach, retains post

The deal, if successful, will increase the number of Vietnamese packaging companies owned by Siam Cement Group Public Company Limited (SCG Group) to seven, VNExpress reported.

TCG Solutions, a subsidiary of the Thai cement and building material giant, is set to purchase 12 million shares of Bien Hoa Packaging, which is based in the southern province of Dong Nai, later this month.

The transaction period is set to take place via the Vietnam Securities Depository (VSD) from December 16-31.

1719 16

Workers operate a packaging manufacturing chain in a factory of Bien Hoa Packaging Jsc.

Photo courtesy of the company.

The value of the transaction has not been disclosed, but given the market share price of VND77,000 (US$3.33) per unit, TCG could fork out more than VND920 billion (US$39.8 million) for the deal.

Prior to the acquisition, the Vietnamese company raised its foreign ownership limit to 100% in July.

In fact, the announcement for acquisition proves to be a formality as existing Vietnamese members of the board of directors and supervisory board have resigned and were replaced with Thai personnel from TCG during the Extraordinary General Meeting of Shareholders on December 9, HanoiTimes reported.

Among new personnel, Ekarach Sinnarong was appointed as Chief Executive Officer (CEO) cum Legal Representative of the company for 2020-23 tenure and TCG Solutions Director Suchai Korprasertsri as new Sovi President.

Sovi’s new board of directors is comprised of nine members, including five Thais, two Japanese, and one Vietnamese.

1721 17

Thai conglomerate Siam Cement Group (SCG) plans to purchase over 12 million shares or 94.11% stake of Bien Hoa Packaging.

The deal to acquire the seventh firm shows SCG Group’s intention to dominate Vietnam’s packaging industry. One of the six it has taken over earlier is the largest local firm, Kraft Vina, which is a joint venture between SCG and Japanese packaging firm Rengo.

Founded in 1968, Bien Hoa Packaging manufactures carton and offset packaging. The company’s customer portfolio comprises a number of multinational companies such as Unilever, Pepsi, Coca-Cola, and Nestlé, the Saigon Times said.

In the first half of 2020, the company posted more than VND62 billion of profit after tax, increasing by 26% compared with the same period last year.

As of mid-2020, Sovi’s total assets reached over VND1 trillion, up 11% from the beginning of the year.

SCG was one of the earliest foreign investors in Vietnam in the 1990s. In the last decade, the company has been pouring money to acquire major companies in the industry sector including one of the largest plastic producers, Binh Minh Plastics.

SCG now owns 20 subsidiaries in Vietnam covering a range of industries including cement, construction materials, chemicals, and packaging.

In Vietnam, packaging paper accounts for nearly 50 percent of total paper consumption. According to the Vietnam Pulp and Paper Association (VPPA), the demand for packaging paper would see a relatively high growth rate of 14-18 percent per annum in the next 5-10 years.

Under the development strategy of the industry, the packaging paper output would reach 6 million tons by 2025, or twice as much as 2019.

vufo delegation visits its founding place celebrating 70 years of service

VUFO delegation visits its founding place celebrating 70 years of service

On the occasion of its 70th anniversary (November 17, 1950 - 2020), a delegation of the Vietnam Union of Friendship Organizations (VUFO) led by its ...

covid 19 updates nov 8 thailand proposes shorter quarantine for vietnam citizens

COVID-19 Updates (Nov. 8): Thailand proposes shorter quarantine for Vietnam citizens

Thailand's Public Health Emergency Operation Centre has approved the proposal to reduce the mandatory quarantine period for tourists under the special tourist visa (STV), including ...

thai government offers disaster relief aid of usd 30000 to vietnam

Thai Government offers disaster relief aid of USD 30,000 to Vietnam

Prime Minister Prayut Chan-o-cha said the Thai Government will offer aid of 30,000 USD to Vietnam to help it overcome the consequences of the recent ...

Malie Nguyen
Phiên bản di động