Japanese Haseko Corporation reaches acquisition deal amidst COVID-19 crisis

May 19, 2020 | 16:56

(0) user say

Despite COVID-19 and the VCCI’s proposal to delay M&A deals during the pandemic to avoid leaving local firms vulnerable to hostile takeover bids from foreign investors, Japanese Haseko Corporation reached an agreement to acquire a 36 per cent stake in Vietnam-based construction firm Ecoba.

japanese haseko corporation reaches acquisition deal amidst covid 19 crisis

Haseko Corporation started to invest in Vietnam in 2012

Haseko Corporation and Ecoba spent almost eight months with dozens of meetings to discover their capabilities, operation mode, and find common points in their vision and management views before deciding on long-term strategic co-operation.

While the deal value was not disclosed, it brought a spark of belief to the market hit by COVID-19, when other ongoing M&A deals ground to a halt, especially after the VCCI's proposal to delay M&A deals during the pandemic by legislation. While belying market sentiment, the VCCI's proposal has not received a final decision yet and many claim it is unfounded.

Haseko Corporation is one of the leading condominium contractors and development corporations in Japan with total assets of up to $6.8 billion, holding 10 per cent of existing apartments in Japan.

Meanwhile, Vietnam-based construction firm Ecoba reported good performance over the years as it successively won large projects across the country, such as Lancaster Luminaire, Flamingo Cat Ba Resort, Vincom Megamall (Vincity Tay Mo), Iris Garden, Riviera Cam Ranh Hotel, Altara Quy Nhon, Aquabay Residence Ecopark, Hinode City, King Palace, and British University BUV Ecopark, among others.

By Nguyen Thu

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional