SCG Group of Thailand said its subsidiary Nawaplastic has completed the acquisition of 50.9% stake of Binh Minh Plastics Company.
The recent announcement of SCG Group on the business results of the first quarter of 2018 said that Nawaplastic Industries (Saraburi) Co., Ltd. (Nawaplastic), a subsidiary of SCG, has completed the acquisition of shares of Binh Minh Plastic JSC. (BMP) – one of the leading plastic pipe manufacturers and distributors on Ho Chi Minh Stock Exchange. This transaction increased Nawaplastic’s existing stake in BMP to 50.9%.
“With a passion to serve customers better, SCG will focus on developing management capabilities to improve BMP’s performance to bring higher quality plastic pipe products to the construction market. ”, A statement issued by SCG said. SCG, a Thai corporation, expressed its ambition to acquire Binh Minh Plastics in early March, when Nawaplastic registered to buy all 24,159,906 BMP shares that the State Capital Investment Corporation (SCIC) has acquired. ) offering – equivalent to 29.5% of BMP’s shares. This goal is not complete when an individual investor successfully registers to buy 20,000 shares. SCIC earned 2,331 billion dong in this offering. After this transaction, Nawaplastic holds a 49.89% stake in BMP.
Recently, Nawaplastic continued to register to buy 818,609 additional shares of Binh Minh Plastics, increasing the number of BMP shares to more than 41.66 million shares, equivalent to 50.89%. SCG has had many M&A deals in Vietnam. In late 2012, this group spent about VND 5,000 billion on acquisition of Vietnam’s Prime Group brick business. In early 2017, SCG spent US $ 160 million on a 100% equity purchase of Vietnam Construction Materials JSC. Mr. Roongrote Rangsiyopash, Chairman and CEO of SCG Group, said that first quarter of 2018 sales before auditing reached VND 85,195 billion (USD 3,749 million), an increase of 4% compared to the previous quarter and an increase of 2% compared to the previous quarter. in the same period last year.
Meanwhile, profit in the period reached VND 8,938 billion (USD 393 million), down 1% from the previous quarter and 29% compared to the same period last year, mainly due to the decline in business activities of subsidiaries and an associate in the petrochemical industry, affected by the appreciation of the baht and raw material costs. Another reason for better performance in the previous year is the sale of SCG’s investments. SCG in Vietnam owns a total asset of VND 36,369 billion. This sales reached more than VND 6,000 billion, including revenue from both domestic activities and imports from Thailand, an increase of 10% over the same period mainly from packaging, cement and construction materials. Most recently in Vietnam, SCG held a groundbreaking ceremony of a key project – Southern Petrochemical Complex (LSP) located in Long Son Commune (Ba Ria – Vung Tau Province), with a scale of 5.4 billion. USD.
According to Young Intellectuals