The merger of two listed cementproducers, Ha Tien 1 and Ha Tien 2, is expected to be finalised in thefirst quarter of this year, a representative of Ha Tien 1 Co confirmedon Feb. 23.
Under the merger plan, Ha Tien 1 will exchange 88 million of its shares for Ha Tien 2 shares on a 1:1 ratio.
“Barring unforeseen circumstances that might have an impact on themerger, we are trying to get it finalised during the first quarter,”said Huy Hung of Ha Tien 1’s accounting department. “We have alreadysubmitted documents to the State Securities Commission and are nowawaiting the commission’s approval.”
The merger is part of a larger restructuring plan being undertaken bythe State-owned Vietnam Cement Industry Corporation, approved by theGovernment earlier this year. The plan aims to unify a number ofaffiliates in order to consolidate the corporation’s trademark as theleading cement producer on the domestic market.
Trinh Thanh Can, a member of Ha Tien 2’s management board, said thatthe merger would allow his company to take advantage of Ha Tien 1’sstrength in distribution, as well as cut production costs.
The merged company would also share a larger market share and have astronger competitive capacity in an increasingly harsh domestic market,Can said.
The shareholders of both companies have voted to approve the merger,and the two companies inked the merger deal on January 20.
Vietnam Capital Securities Co was acting as a consultant for themerger, which would producer a single larger firm listed on the HCMStock Exchange with a combined charter capital of nearly 2 trillion VND(105.2 million USD)./.
Under the merger plan, Ha Tien 1 will exchange 88 million of its shares for Ha Tien 2 shares on a 1:1 ratio.
“Barring unforeseen circumstances that might have an impact on themerger, we are trying to get it finalised during the first quarter,”said Huy Hung of Ha Tien 1’s accounting department. “We have alreadysubmitted documents to the State Securities Commission and are nowawaiting the commission’s approval.”
The merger is part of a larger restructuring plan being undertaken bythe State-owned Vietnam Cement Industry Corporation, approved by theGovernment earlier this year. The plan aims to unify a number ofaffiliates in order to consolidate the corporation’s trademark as theleading cement producer on the domestic market.
Trinh Thanh Can, a member of Ha Tien 2’s management board, said thatthe merger would allow his company to take advantage of Ha Tien 1’sstrength in distribution, as well as cut production costs.
The merged company would also share a larger market share and have astronger competitive capacity in an increasingly harsh domestic market,Can said.
The shareholders of both companies have voted to approve the merger,and the two companies inked the merger deal on January 20.
Vietnam Capital Securities Co was acting as a consultant for themerger, which would producer a single larger firm listed on the HCMStock Exchange with a combined charter capital of nearly 2 trillion VND(105.2 million USD)./.
