Woomi Construction seizes major holding in two real estate developers

One of the projects of Woomi Construction in South Korea

On May 16, Woomi Construction completed the purchase of 10.26 million shares of BCG as well as 1.72 million shares of Tracodi, taking in 9.5 and 5 per cent of the shares, respectively, to officially become a major shareholder of both companies.

Besides Woomi Construction, the other institutional shareholders of BCG include DOJI Group (10 per cent) and Imperial Dragon Investments Limited from Hong Kong (65.5 per cent). Those in TCD include Bamboo Capital JSC (54 per cent), Intact Management from Taiwan (10 per cent), and Bao Viet Securities JSC (5 per cent).

According to plan, Woomi Construction will assist BCG’s Board of Directors to develop a diversified portfolio of real estate projects as well as to connect with business partners from Korea.

On the Tracodi side, Woomi Construction will play the role of a technical consultant and be mainly in charge of technology transfer to help Tracodi become one of the leading construction companies in Vietnam.

“With vast experience in the field of construction, the partnership between Woomi Construction with BCG and Tracodi is an important step for both companies’ future real estate projects towards quality enhancement and meeting international standards,” said Pham Minh Tuan, deputy general director of BCG.

Woomi Construction was incorporated in 1982, and is currently one of the largest Korean blue-chip companies in residential construction. The company provides services such as real estate development, civil and industrial works, infrastructure design, and plant construction, among others.

BCG is a conglomerate group working in the real estate sector, however, it is also a famous solar power plant developer. In July 2017, it signed a cooperation agreement with Unisun Energy Group (Hong Kong) and Coara Solar (Germany) for a 40MW solar energy project in the southern province of Long An.

This $40-million project will be BCG’s second solar power plant in Long An. Similar to the first 100MW plant owned by Hanwha-BCG Bang Duong Joint Venture, this 40MW plant was expected to start construction in the first quarter of 2018 and was expected to generate power already in the second quarter of 2019.

Despite the fact that Long An has approved the allocation of 175 hectares of land to BCG to start implementing these two projects, however, to date, the constructions works have yet to be kicked off.

Tracodi has many groups and allied companies, such as An Giang Joint Venture of Construction Material Exploitation and Processing (Antraco), Vinataxi, and Vinacafe Da Lat JSC.

Tracodi’s projects include a $49-million upgrade to provincial roads in Long An province, the project to upgrade Nguyen Huu Tri Street linking Ho Chi Minh City’s Binh Chanh district with Long An province’s Ben Luc district, and a grade A mixed-use building in Ho Chi Minh City’s District 1, as well as a residential-shopping complex in Cu Chi district.