Vissai to buy Song Lam 2 Cement Company
Vissai to buy Song Lam 2 Cement Company
Song Lam 2 Cement JSC has announced the sale of its entire stock (PX1 listed in the UpCOM) to the Vissai Hoang Phat group (The Vissai) in April.
Vissai will be the new owner of the Song Lam 2 Cement JSC in the central province of Nghe An after buying it from the state-owned PetroVietnam Cement 12/9 JSC.
In 2013, PetroVietnam Cement 12/9 JSC had halted the construction of the cement company due to financial difficulties. Now Vissai will invest VND500 billion (US$23.1 million) to complete it and plans to make it operational during the third quarter of 2015.
Vissai had reportedly repurchased PX1 shares for VND10,000 (US$0.44) each. Shareholders have been allowed register to sell their stock from April 8.
Based in the northern Ninh Binh province, Vissai is one of the country's largest cement producers. By the end of 2014, it had produced 8 million tonnes of product and earned VND10 trillion ($463 million) in revenue.
It also commenced the construction of the Song Lam Cement Company in February. The Do Luong Cement Company in Nghe An Province was renamed as the Song Lam Company, which had a capacity of 6 million tonnes per year.
With Song Lam 2 SJC, Vissai now owns nine clinker and cement production chains all over Viet Nam.
Vissai's Chairman, Hoang Manh Truong, said the group had signed an export contract for 1.2 million tonnes of clinker with Bangladesh, which had brought its market count to 20 countries and territories, including Germany, Mozambique, Congo, Indonesia, China, Hong Kong, France, Australia and the United Kingdom.
According to the latest data from the Department of Building Materials under the Ministry of Construction, cement consumption this year reached 71 to 73 million tonnes, which reflected a 4 to 7 per cent rise from the levels seen in 2014.
Yet to be listed in the local stock market, Vissai has 12 million shares that are traded in the OTC market.
