Jun 15, 2018 / 07:13

Nawaplastic takes control of Binh Minh Plastic

Nawaplastic Industries, a subsidiary of Thailand`s Siam Cement Group (SCG), has managed to acquire nearly 1.7 million shares in Binh Minh Plastic, announced the former.

The transaction took place from May 14 to June 12 in the Ho Chi Minh City Stock Exchange (HoSE). 
 
Illustration photo.
Illustration photo.
Before the purchase, Nawaplastic held 41.66 million shares of Binh Minh Plastic, equivalent to 50.89% of charter capital. Following the move, the Thai company increased its holding in Binh Minh Plastic to 43.35 million, equivalent to 52.96% of charter capital.

"The move is considered a major step in expanding the high value added products production base to drive growth in ASEAN," said Roongrote Rangsiyopash, President and CEO of SCG in the Group's quarterly Operating Results report.

Established in 1977, Binh Minh Plastics has cemented its position as the country's leading manufacturer and trader of plastic pipes and fittings. The government last year removed the limit of foreign ownership in Binh Minh Plastics, which was previously capped at 49%.

Apart from Nawaplastic, its other investors include Franklin Templeton Investments that owns 10.78%. Nawaplastic had earlier divested its entire 24% stake in Tien Phong Plastic JSC, a rival of Binh Minh Plastic, for more than VND1.5 trillion (US$66 million). As of 2017, SCG has invested about US$121 million in Vietnam's plastic industry.

The Thai group also holds shares in a number of companies specializing in the production of household plastics, such as Viet-Thai Plastchem, TPC Vina Chemical and Plastic Corporation, and Minh Thai House Component.

In 2017, Binh Minh Plastic's revenue stood at VND4 trillion (US$176 million), up 10% year-on-year while after-tax profit was only VND471 billion (US$20.7 million), down 25% compared to the previous year, stated the audited financial report. 

For 2018, Binh Minh Plastic set revenue target at VND4.3 trillion (US$189 million), while pre-tax profit is estimated at VND600 billion (US$26.3 million), increasing 6% and 3% compared to 2017, respectively. The plastic firm expected to allocate VND380 billion (US$16.7 million) for future investment, said the company's document in prepared for the annual general meeting.