The merger of two listed cement producers, Ha Tien 1 and Ha Tien 2, is expected to be finalised in the first quarter of this year, a representative of Ha Tien 1 Company confirmed on 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 the merger, we are trying to get it finalised during the first quarter,” said Huy Hung of Ha Tien 1’s accounting department. “We have already submitted documents to the State Securities Commission and are now awaiting the commission’s approval.”
The merger is part of a larger restructuring plan being undertaken by the State-owned Vietnam Cement Industry Corporation, approved by the Government earlier this year. The plan aims to unify a number of affiliates in order to consolidate the corporation’s trademark as the leading cement producer on the domestic market.
Trinh Thanh Can, a member of Ha Tien 2’s management board, said that the merger would allow his company to take advantage of Ha Tien 1’s strength in distribution, as well as cut production costs.
The merged company would also share a larger market share and have a stronger 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 Company was acting as a consultant for the merger, which would producer a single larger firm listed on the HCM Stock Exchange with a combined charter capital of nearly 2 trillion VND (105.2 million USD).