Construction firm to expand holding in state-owned transportation consultant

August 18, 2014 | 17:00

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FECON Foundation Engineering and Underground Construction JSC (HOSE:FCN) is looking to increase its share position in consulting firm Transport Engineering Design Inc. (TEDI).

Accordingly, FCN plans to buy 2.6 million shares of TEDI at no higher than VND21,900 ($1.04)/share to raise its current 5 per cent holding to 25.76 per cent.

The move is aimed at facilitating co-operation between the two firms, particularly in research and development, an FCN representative explained.

FCN originally bought 5 per cent of TEDI to join as the firm’s sole domestic strategic partner. TEDI sold the entire 20.8 per cent stake it put up in its March IPO and the state currently maintains a 49 per cent stake.

Transport Engineering Design Inc. (TEDI), established in 1962, is a national leader in designing transport infrastructure and providing consultancy services.

In early August TEDI proposed the Ministry of Transport sell the state’s 49 per cent stake to the firm’s employees. The sale will help TEDI become eligible to bid on ODA projects and those offered by the transport ministry.

By By Khanh Tran

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