Truong Thanh Furniture Corporation (TTFC), one of Vietnam’s biggest wooden products makers and exporters Jul 18 sold 33 per cent of its shares to 10 strategic partners.
The Binh Duong province-based company said six of the partners are foreign entities, comprising Aureos South East Asia Managers Ltd, VinaCapital’s VOF Investment Ltd, Deutsche Asset Management, IFAG Institutionelle, and Asset Management Consulting AG. The rest includes local Bao Viet Securities Joint Stock Company.
The foreigners have together bought 2.8 million shares or 18.3 per cent of the total, and the local 2.3 million shares.
But the partiers did not reveal value of the sale.
Among the former, Aureos South East Asia Manager Ltd has picked up the largest chunk with 1.09 million shares. Truong Thanh is the first buy by the company in Vietnam. ACL has set aside US$10.5 million for its investment in Vietnam and may boost the figure to US$40 million in the near future.
TTFC’s general director Vo Truong Thanh said the deal was part of the company’s long-term strategy to strengthen its financial capacity and expand business to meet demand which was growing at over 50 per cent annually.
Thanh said the strategic partners will also contribute to management, particularly financial, and boosting the company’s prestige globally.
Next month, the company will make a public issue of shares with a face value of VND75,000 each.
TTFC plans to build a new wood processing plant in Binh Duong’s Tan Uyen district at a cost of VND194 billion (US$12.1 million). The 16ha plant, reportedly the most modern of its kind in Ivetnam, is expected to produce 40 per cent of the company’s output.
The company will also invest VND500 billion into 10 year project to plant 50,000ha of forest that will yield one million cu.m of timber a year from the seven year onwards, ten times the country’s current timber use.
TTFC also plans to enlarge the Truong Thanh-Eah’ Leo industrial complex by 100ha in central highland Dak Lak province. (VNS)
Vietnamese
