Wood processor takes new partners

Truong Thanh Furniture Corporation, one of Viet Nam’s largest wooden products makers and exporters, announced yesterday it has sold over 33 per cent of its shares to 10 strategic partners.

The Binh Duong Province-based company said six of them were foreign entities – Aureos South East Asia Managers Ltd., Vina Capital’s VOF Investment Ltd., Deutsche Asset Management, IFAG Institutionelle, and Asset Management Consulting AG – and the rest local, including Bao Viet Securities Joint Stock Co.

The former have together bought 2.8 million shares amounting to 18.3 per cent of the total, and the latter 2.3 million shares. But the parties refused to divulge the price.
Aureos South East Asia Managers Ltd. has picked up the largest chunk – some 1.09 million shares.

TTFC’ s general director Vo Truong Thanh said the deal was part of the company’s long-term strategy to strengthen its financial capability and expand to meet demand which was growing at over 50 per cent annually.

Thanh, also TTFC’s president, said the strategic partners would also contribute to management, particularly financial, and boosting the company’s prestige globally.

TTFC plans to build a new wood processing plant in Binh Duong’s Tan Uyen District at a cost of VND194 billion ($12.1 million). The 16ha plant, reportedly the most modern of its kind in Viet Nam, is expected to produce 40 per cent of the company’s output.

Another huge project, to set up a company that will plant forests, has received Government support in terms of policies and land issues.

The new company will undertake a 10-year, VND500 billion project to plant 50,000ha of forest that will yield of 1 million cu.m of timber a year from the seventh year onwards, ten times the company’s current timber use.

TTFC also plans to invest in expanding the Truong Thanh-Eah’ Leo industrial complex by another 100ha in the Central Highlands province of Dac Lac.
Next month it also plans to make a public issue of shares with a face value of VND75,000.
Subsequently, it will list on the HCM City stock exchange.

Source: VNE