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|Asia Pile Holding will purchase 51 per cent of Fecon Mining through the stock exchange|
Fecon Mining JSC (code: FCM) has just announced documents for the general shareholders’ meeting taking place on September 10. Accordingly, the company will seek shareholders' opinion on the selection of strategic shareholders.
Fecon Mining said that its strategic partner must be a firm with strong financial resources and expertise in the pile sector.
According to the statement, Fecon Mining’s Board of Directors has approved the selection of Phan Vu Investment Corporation as a strategic investor. Phan Vu will receive 20.91 million of FCM shares, equivalent to a 51 per cent stake. The transaction will be made through the stock market.
Phan Vu Investment Corporation was established in 1997 with the charter capital of VND290 billion ($12.8 million) and specialising in the production and construction of prefabricated concrete.
In 2010, Phan Vu received investment capital from Japan Pile Corporation, a Japanese Corporation specialising in providing pre-stressed concrete piling solutions to developing countries in Asia.
In 2015, Phan Vu, in collaboration with Japan Pile and Myanmar’s V.J.P., established Asia Pile Holding based in Tokyo (Japan) and its stock has been listed on the Tokyo stock exchange.
On the Ho Chi Minh City Stock Exchange, the price of the FCM ticker was around VND6,000 ($0.26) apiece. It rose to the ceiling after the information on the strategic shareholder was disclosed.
Fecon Mining was a subsidiary of Fecon Corporation, one of the largest underground construction companies in Vietnam. The company is executing projects such as the Hoa Phat-Dung Quat Steel complex, the VinFast manufacturing plant complex, and AEON Hadong.
Earlier, on August 9, Phan Vu and Fecon signed the comprehensive co-operation agreement to establish a leading manufacturing and executing alliance in Vietnam and reach out to the Asian market.