Cable maker Sacom willing to spend more than $40 million on buying all State capital in Vinamotor.
Vietnamese telecommunications cable maker Sacom has submitted a proposal to the Ministry of Transport (MoT) on acquiring the entire State capital in the Vietnam Motors Industry Corporation (Vinamotor).
Sacom proposed a figure of VND855.81 billion ($40 million) for more 85 million Vinamotor shares at a price of VND10,000 ($0.47) per share, or 97.7 per cent of the charter capital held by MoT.
If any other investors join the acquisition, however, the price will be determined by bidding and the bid price will likely be higher than the level proposed by Sacom.
Sacom’s move comes as something of a surprise according to experts, as its core business activities are quite different to Vinamotor’s. It specializes in producing copper cables, fiber optic cables, and magnetic wire. As at the end of last September its total assets stood at VND3.079 trillion ($144.2 million), with charter capital of VND1.308 trillion ($61.2 million).
Vinamotor has been regarded as a “big brother” of auto mechanics in Vietnam, with their main products ranging from passenger cars and car accessories to passenger and goods transport, but its businesses operations have not been efficient. It carried out an initial public offering (IPO) at the Hanoi Stock Exchange in March last year.