Nawaplastic acquires dominant stake in Binh Minh Plastic

09:00 | 12/06/2018
After buying an additional 1.69 million shares in Binh Minh Plastic (BMP), Nawaplastic Industry Co., Ltd. holds the dominant stake in the country’s leading plastic producer.  
nawaplastic acquires dominant stake in binh minh plastic
Nawaplastic gave a significant role to BMP in its strategy in Vietnam

According to information published by BMP, Nawaplastic completed the purchase of 1.7 million BMP shares to increase its holding from 42.75 million shares to 43.35 million.

The transactions were conducted on May 14-June 12. During these transactions, the highest price of BMP’s shares was VND64,000 ($2.81), thus, Nawaplastic spent a maximum of VND108.8 billion ($4.77 million) on the deal.

Once SCG’s Long Son Petrochemical Complex comes into operation in 2023, BMP will become the plastic supplier of this complex.

Previously, Nawaplastic registered to buy 2.86 million BMP shares during these transactions, however, the Thai investor ended up buying 1.69 million of the registered shares as BMP did not match Nawaplastic’s target price.

Nawaplastic, a wholly-owned subsidiary of Thai Plastic and Chemicals PCL (TPC), specialises in manufacturing and distributing PVC.

TPC, which is a 90 per cent owned subsidiary of SCG, currently holds 50 per cent of the Thai plastics market, while simultaneously owning numerous plastic manufacturing companies in Vietnam, including Chemteck Co., Ltd. (100 per cent), Viet-Thai Plastchem Co., Ltd. (72.49 per cent), and TPC Vina Plastic and Chemicals Corporation Limited (70 per cent).

Regarding the role of BMP in SCG’s development strategy in Vietnam, according to a representative of Ho Chi Minh Securities Corporation, BMP is considered a key part in SCG's petrochemical strategy in Vietnam. Notably, according to plan, once SCG’s $5.4 billion Long Son Petrochemical Complex comes into operation in 2023, BMP will become the plastic supplier of this complex.

Established in 1977, BMP currently has four facilities in Hung Yen, Binh Duong, Ho Chi Minh City, and Long An.

By Kim Oanh

Based on MasterCMS Ultimate Edition Ver 2.8 2018