After completing the purchase of an additional 1.17 million shares, Nawaplastic Industry Co., Ltd. (Nawaplastic), a subsidiary of Thailand’s SCG, has lifted its stake in Vietnamese plastic producer Binh Minh Plastic JSC (BMP) to 54.39 from 52.96 per cent.
|Nawaplastic has been gunning for BMP for a while now |
According to a disclosure by BMP, the transaction occurred between June 22 and July 5. Nawaplastic spent VND60 billion ($2.6 million) on the deal.
The share volume is the remaining part of the 2.86 million shares that Nawaplastic failed to buy during previous transactions.
Notably, Nawaplastic registered to buy 2.86 million BMP shares during transactions on May 14-June 12, however, the Thai investor ended up buying only 1.69 million shares as BMP did not match Nawaplastic’s target price.
Established in 1977, BMP has cemented its position as the country’s leading manufacturer and trader of plastic pipes and fittings.
Acquiring BMP serves for SCG’s petrochemical project in Vietnam. According to a representative of Ho Chi Minh Securities Corporation, BMP is considered a key part in SCG's petrochemical strategy in Vietnam. Notably, according to plan, once SCG’s $5.4 billion Long Son Petrochemical Complex comes into operation in 2023, BMP will become the plastic supplier of this complex.
By Kim Oanh