Ministry of Construction to divest from Viglacera

May 26, 2018 | 10:59
The Ministry of Construction (MoC)’s divestment from Viglacera Corporation JSC may be an opportunity for strategic shareholder VinaCapital to increase its holding in the leading company of the building materials industry?
ministry of construction to divest from viglacera
The Ministry of Construction to divest from Viglacera

MoC recently released its approved plans to divest 80.57 million shares, equaling 17.97 per cent of Viglacera’s charter capital, in the first phase. The offered stake makes up 33 per cent of MoC’s holding in the company. The sale will be conducted through the order matching method on the Hanoi Stock Exchange, expected to take place in two month's time.

After the sale, MoC will decrease its holdings in Viglacera to 161.4 million shares, equaling 36 per cent of the charter capital of the corporation.

The selling price will be equal to the ceiling price determined on the transaction session on the same date, but not less than VND26,100 per share or the average reference price of 30 consecutive trading days on the stock market prior to the date the information on the divestment is disclosed.

Previously, at the September 14, 2017 transaction, five investment funds under VinaCapital management, namely VOF Investment Ltd., Asia Value Investment Ltd., Vietnam Investment Ltd., Vietnam Investment Property Holdings Ltd., and Vietnam Ventures Ltd., purchased a total of five million shares, raising VincaCapital’s ownership in Viglacera from 16.36 to roughly 21.36 million shares, making it a strategic shareholder.

Thus, MoC’s divestment is an opportunity for VinaCapital to buy more shares to increase its holding in Viglacera if it has ambitions to do so.

Most recently, Viglacera and Kaisheng Group signed an agreement to establish Yen Phong Ultra-Clear Glass Co., Ltd. to develop an ultra-clear laminated glass factory with the daily capacity of 650 tonnes in the expanded Yen Phong Industrial Zone in the northern province of Bac Ninh. The construction of the factory is expected to kick off in the third quarter of this year and be finished by 2020.

Once completed, it will be the first ultra-clear laminated glass factory in the country. Its products will be used to manufacture solar panels.

Besides, Viglacera and its partners are accelerating the construction of a $106.4-million ultra-clear glass factory located in the southern province of Ba Ria-Vung Tau so that the factory can go into pilot operation in the second quarter of 2019.

In early May, Viglacera and Prodimat Corporation of Cuban Construction Material Company (Geicon) of the Cuban Ministry of Construction signed a contract to launch the 50/50 SANVIG joint venture manufacturing building materials.

The project has a total investment of $59.7 million and charter capital of $39.86 million. In the first phase, the joint venture will focus on renovating and upgrading its two existing ceramic tile factories to improve productivity, quality, and change product design in order to meet the designed capacity of three million square metres of tiles and 150 thousand sanitary ware products per year.

Then, in the second phase, the joint venture will invest in a brick factory with a capacity of three million sq.m and a sanitary ware factory with a capacity of 500,000 products per year.

By Kim Oanh

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