Japanese firm buys $9 million stake in Vinatex

October 31, 2014 | 15:00

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Itochu Corporation, a multi-industry Japanese firm, has bought a 5 per cent stake of Vinatex, Vietnam’s largest textile company, for $9.25 million, reported Japanese newspaper Nikkei.

Vinatex’s IPO consultant shared with Vnexpress that Itochu has long planned to make an investment into a Vietnamese textile company. Initially they planned to become a strategic partner of Vinatex, but finally decided to purchase a stake via the share auction.

The deal has been finalised, but it is unlikely to be reflected in Vinatex’s business results for this year. The IPO consultant said that “With such a large-scale company, it will take time to see the outcome.”

Vinatex held its IPO on September 22 at the Ho Chi Minh Stock Exchange. 90 per cent of the company’s shares on offer were sold, of which foreign investors purchased nearly half.

Itochu is the first non-financial Japanese company to invest in a Vietnamese state-owned enterprise. Itochu is the largest company operating in Japan’s textile sector. Its products range from raw materials, machinery and chemicals to food and fashion items. It currently works in some capacity with around 100 Vietnamese textile firms.

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