An Phat Holdings’ landmark deals in 2018
An Phat Holdings’ landmark deals in 2018
The name of privately-held An Phat Holdings has been featured in a string of landmark deals throughout the year, such as the collaboration with VinFast, re-starting the multi-million dollar Dinh Vu Polyester Plant, and resurrecting Viet Hoa-Kenmark Industrial Park.
A youthful entity acquiring controlling stake in AAA
An Phat Holdings (APH) has recently been making headlines in local media. Right after the acquisition of Hanoi Plastic JSC, APH shook hands with VinFast of leading local conglomerate Vingroup, on establishing an enterprise producing plastics and auto components right at VinFast’s headquarters in Haiphong city’s Dinh Vu-Cat Hai Economic Zone.
Earlier, APH was the chief factor helping to re-start the $325 million Dinh Vu Polyester Plant which suspended production for years due to capital distress.
APH was founded by the leadership team of An Phat Plastic and Green Environment JSC (AAA) in March 2017 with the initial target of taking control of AAA as a long-term investment and receiving dividend.
From late May 2017, APH started to buy AAA stocks from its key leaders, then acquiring AAA’s warrants in a bid to possess at least 51 per cent of the company’s charter capital. Currently, APH is the largest shareholder of AAA through holding 46.62 per cent.
By contrast, APH’s top leaders, including Pham Anh Duong (co-chairman at both AAA and APH), Pham Hoang Viet (member of the board at both AAA and APH), Nguyen Le Trung (member of the board cum CEO of AAA and member of the board at APH), and Dinh Xuan Cuong (member of the board at AAA, member of the board cum CEO of APH) are now no longer AAA shareholders.
Resurrecting a string of major projects
Far from its initial target of just taking a controlling stake in AAA, APH has been conducting major deals, helping to revitalise multi-million dollar projects that have seemingly sunk into oblivion.
Resuming the operation of Viet Hoa-Kenmark Industrial Park (IP)
In March 2018, An Phat High-Tech JSC, a subsidiary of AAA and member unit of APH, injected VND756 billion ($32.8 million) into buying the 46ha Viet Hoa-Kenmark IP in the northern province of Hai Duong.
The project’s former owner was Kenmark Investment and Development Limited, owned by a Taiwanese investor which was licensed in 2006 with $500 million investment promise to build up a large-scale IP.
As planned, in the first phase Kenmark will pour in around $98.4 million. After three years of building the IP’s technical infrastructure, a wastewater treatment plant, and 13 workshops over 11.4ha in 2010, the investor abruptly left home and the project faced suspension since then.
At this project, Kenmark took up a total loan of $67.6 million at three local banks – BIDV, SHB, and Habubank (now merged with SHB).
The sale of the IP failed many times before APH stepped in as buyer.
After acquiring Viet Hoa-Kenmark IP, AAA and APH changed the IP’s name into An Phat Complex, which engages in producing high-tech and environmentally friendly plastic products with VND2.056 trillion ($89.4 million) in total investment value and is expected to employ 6,000 labourers.
As planned, An Phat Complex will complete the repair and upgrading of the IP infrastructure and the five workshop blocs will be able to begin production in July 2020.
As to why APH has invested into An Phat Complex, the executives said that they want to attract domestic and foreign investors and build modern IP infrastructure to serve the group’s projects and diversify fields of operation to hit $1 billion in revenue in the not-so-distant future.
Re-starting $325 million Dinh Vu Polyester Plant (PVTex)
An even more impressive deal involving APH relates to resuming operations at PVTex.
This May, PVTex JSC has signed a business co-operation contract with APH and several other foreign partners to start commercial operation of PVTex’s filament production workshop.
On July 24, 2018 PVTex and An Son JSC, which was authorised by APH to sign the dried texture yarn (DTY) processing contract, debuting the business co-operation between the sides and the entire commercial operation of PVTex.
Under the agreement, the sides have reached a consensus on raising three additional DTY production lines to have an entire 25 DTY lines with a combined capacity surpassing 60 tonnes of yarn per day, equal to about 1,800 tonnes per month.
PVTex’s management authority, PetroVietnam, was reported to have agreed with APH on selling at least 35 per cent of the polypropylene (PP) output from its Binh Son Refining Petrochemical JSC to APH for 5-10 years within the framework of PVTex’s restructuring.
Acquisition of Hanoi Plastic and shaking hands with VinFast on plastic and auto component production
APH has just completed acquiring nearly 52 per cent in Hanoi Plastics JSC (ticker NHH) from Cadivi Dong Nai Limited.
In addition, Man Chi Trung, director of An Trung – a member unit of APH – and two other individuals became members of NHH’s Board of Management.
After Cadivi Dong Nai, MB Capital JSC has recently announced selling all 1.36 million NHH stock (equal 20.88 per cent of the charter capital). Cadivi Dong Nai was reported to have just increased its stake in NHH from 24.9 to 51.86 per cent in 2018.
Hanoi Plastics is a long-standing business producing plastic motorbike and auto components that has several foreign-backed car and electric firms as long-term customers, such as Honda Vietnam, Piaggio Vietnam, Toyota Vietnam, Panasonic, and LG.
After acquiring Hanoi Plastics, APH shook hands with VinFast to establish VinFast-An Phat (VAPA) Limited with a charter capital surpassing VND420 billion ($18.2 million).
The new firm, belonging to VinFast auto manufacturing complex at Dinh Vu-Cat Hai EZ in Haiphong port city, has the main function of manufacturing parts and other auxiliaries for autos and other motorised vehicles.
Earlier, Hanoi Plastics’ financial statements have also reported sales transactions with VinFast.
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