Two listed construction enterprises, Song Da No 6 and
Song Da 6.04, are discussing a possible merger which, if it takes
place, would be the first between two companies on the nation’s stock
exchanges.
The shareholders meeting of Song Da 6.04 on Thursday
unanimously approved a proposal by a member of the company’s management
board that the two firms merge, according to a local online newspaper.


An official of Song Da No 6, on condition of
anonymity, confirmed the information to Viet Nam News in a telephone
interview yesterday.


"We have now reached in-principle agreement with the
shareholders," said the official. "But there has never been a merger
between two listed firms on the local exchange, so the next step is
seen as a big challenge for us."


Song Da No 6 already holds a 41-per-cent interest in Song Da 6.04.


With a charter capital of VND20 billion (US$1.14
million) and an equity of VND160 billion ($9.1 million), Song Da 6.04
lacked the capacity to handle major contracts which could help it more
strongly establish its name in the local market, said Ho Sy Hung, who
represents Song Da No 6’s stake on the board of Song Da 6.04.


Song Da 6.04 still regularly asked for help from Song
Da No 6 in financing their projects, Hung said. "That’s why these two
companies should merge," he added.


Song Da No 6 would take the lead role in the merger and was drawing on advice from the ACB
Consultancy Co on possible ways of structuring the transaction,
including withdrawing Song Da 6.04’s listing and have Song Da No 6
acquire all of its assets.


Another listed firm, Song Da 6.06, was also planning
to merge with Song Da No 6, but the company’s shareholders have not yet
met to consider the deal.