Hoa Phat Group Co (HPG) has bought up nearly all outstanding shares in the Hoa Phat Energy Joint Stock Co, increasing its stake from 50 percent to 99.86 percent and turning the energy firm into the group's 11th subsidiary.
"The acquisition will help the group expand its operations, increase its strength in industrial production and ensure the stable operation of the Hoa Phat Integrated Steel Complex," the group announced on its official website.
Hoa Phat Energy Co, established in 2007, operates primarily in the production and trading of coke, an ancillary material of the coal industry. In March 2008, it began construction of a coke and thermoelectric plant in the northern province of Hai Duong with a budget of 2 trillion VND (105.3 million USD). The first phase of construction on the plant was completed last October.
Following the transfer of the 30 million newly-acquired shares in the company to HPG, the group will contribute an additional 200 billion VND (10.5 million USD) in capital to Hoa Phat Energy, helping it raise its charter capital to 800 billion VND (42.1 million USD) and finance the second phase of the Hai Duong plant. The plant is expected to earn VND3.5 trillion (184.2 million USD) annually upon its final completion in mid-2011.
Hoa Phat Group earned 3.74 trillion VND (196.8 million USD) and posted a net profit of 462 billion VND (24.3 million USD) in the first four months of this year, an increase of 66 percent in total earnings and 14 percent in profit compared to the same period a year ago./.
"The acquisition will help the group expand its operations, increase its strength in industrial production and ensure the stable operation of the Hoa Phat Integrated Steel Complex," the group announced on its official website.
Hoa Phat Energy Co, established in 2007, operates primarily in the production and trading of coke, an ancillary material of the coal industry. In March 2008, it began construction of a coke and thermoelectric plant in the northern province of Hai Duong with a budget of 2 trillion VND (105.3 million USD). The first phase of construction on the plant was completed last October.
Following the transfer of the 30 million newly-acquired shares in the company to HPG, the group will contribute an additional 200 billion VND (10.5 million USD) in capital to Hoa Phat Energy, helping it raise its charter capital to 800 billion VND (42.1 million USD) and finance the second phase of the Hai Duong plant. The plant is expected to earn VND3.5 trillion (184.2 million USD) annually upon its final completion in mid-2011.
Hoa Phat Group earned 3.74 trillion VND (196.8 million USD) and posted a net profit of 462 billion VND (24.3 million USD) in the first four months of this year, an increase of 66 percent in total earnings and 14 percent in profit compared to the same period a year ago./.
