Singaporean company to expand ownership in Vietnamese logistics provider

Sotrans' warehouse in Phu My Industrial Park 1 in Long Thanh District, Ba Ria - Vung Tau Province. Photo sotrans.com.vn

Hanoi - A Singaporean company, PSA Cargo Solutions Vietnam Investment, plans to continue increasing its stake in Vietnam's logistics provider South Logistics Joint Stock Company (Sotrans).

Sotrans on June 20 received a public tender offer from PSA Cargo Solutions Vietnam Investment to increase its ownership from 24.9 per cent to 30 per cent of charter capital.

PSA Cargo Solutions Vietnam Investment offers to buy another 5,010,921 shares of Sotrans, while the bid price is not disclosed.

Sotrans is listed on the Ho Chi Minh Stock Exchange (HoSE), with a ticker symbol STG. The company's shares ended last week at VND49,000 a share (US$2.08).

At the closing price, it is estimated that PSA Cargo Solutions Vietnam Investment has to spend more than VND245.5 billion to purchase over 5 million STG shares.

Previously, the Singaporean company on May 19 bought 24.47 million STG shares to raise its ownership from 0 per cent to 24.9 per cent of charter capital and become a major shareholder of Sotrans.

In 2023, Sotrans set targets of more than VND2.9 trillion in revenue, up 13 per cent year-on-year, and VND388.43 billion in profit after tax.

It plans to focus on specialising each member's business areas to maximise capacity and efficiency.

Particularly, for Sotrans Logistics, the unit will concentrate on developing international and domestic freight forwarding and warehousing business.

For Vietranstimex, it focuses on developing the segment of transporting super-long and super-heavy goods to meet important industries such as electricity, oil and gas, chemicals, cement, and traffic, in the domestic market as well as in Southeast Asia by cooperating with the largest partners in each market.

Meanwhile, for Sowatco, it will exploit port and waterway transportation activities in Vietnam, and look for opportunities to expand business activities in the north.

In the first quarter, Sotrans reported net revenue of over VND385.4 billion and net profit of nearly VND40 billion, down 48 per cent and 36 per cent over last year, respectively.

Sotrans to cancel listing on HOSE South Logistics Joint Stock Company (Sotrans) will cancel its listing on HCM Stock Exchange and move to the Unlisted Public Company Market (UPCoM) by the end of this year.

Sotrans approves full takeover by ITL Corporation South Logistics JSC (Sotrans – HOSE: STG) has submitted a proposal to allow Indo Trans Logistics Corporation (ITL Corporation) to increase its ownership at the company to 100 per cent without making a mandatory public offering.

ITL Corporation completes acquisition of Sotrans Group Indo Trans Logistics (ITL) Corporation today announced the successful acquisition of South Logistics JSC (Sotrans Group), raising its ownership ratio to 97 per cent.

Larger frame of mind for logistics Throughout more than three decades of economic reform, Vietnamese companies from many sectors have been venturing abroad and become role models. Yet, the logistics sector remains too focused on the domestic market. Tran Thanh Hai, deputy director of the Ministry of Industry and Trade’s Agency of Foreign Trade, emphasised that local players should follow regional examples and take their business to international arena.