Son Ha seeks to expand southern footprint
Son Ha seeks to expand southern footprint
Son Ha International JSC, a leading Hanoi-based stainless steel manufacturer, looks to take on the southern market through the recent acquisition of Toan My JSC.
Under the acquisition plan, Son Ha will distribute 18 million shares to swap for stocks of Toan My JSC’s existing shareholders. The stock swap will take place at the 1:2 ratio, with one Toan My stock swapped for two Son Ha stocks.
After the stock swap, Toan My will become a member of Son Ha and will be operating either under the limited liability company or the joint stock company model.
Explaining the move, a Son Ha representative said the company wants to expand and develop the southern market through acquiring Toan My JSC and availing themselves of the latter’s existing advantages in production capacity, distribution system, and brand name in the south.
Son Ha's total asset value touched VND2.73 trillion ($124 million) versus Toan My’s VND209 billion ($9.5 million).
Son Ha reports VND845 billion ($38.4 million) in equity capital, eight times as much as Toan My, which stands at VND99 billion ($4.5 million).
Son Ha currently operates more than 5,000 sales agents, 112 branch offices, and 60 distributors, whereas Toan My operates more than 20 branch offices and shops in Vietnam’s major cities, with more than 600 sales agents nationwide.
Explaining why with such prevailing advantages, Son Ha had accepted this 1:2 stock swap, the company’s chairman Le Vinh Son said Toan My is a strong brand in the southern market.
Besides, Toan My’s products are mostly in the high-end segment, while Son Ha’s products are in the medium-range, which is why Son Ha decided on acquiring Toan My after completing the acquisition of another southern stainless steel brand, Truong Tuyen, in the middle of this year.
“It is not a matter of the buying price being high or low. If the deal turns out successful, it will not only help Son Ha step into the vast southern market, but also eliminate a heavyweight rival,” Son noted.
