Vietnam: Ha Tien 1 to issue shares for expansion

Vietnam: Ha Tien 1 to issue shares for expansion
Published: 02 June 2010

Ha Tien 1 Cement Joint Stock Company (HT1), listed on the Hochiminh Stock Exchange, will issue 88 million shares for shareholders in Ha Tien 2 Cement JSC (HT2) to acquire all stake in the latter.

Each stakeholder will receive one new share in HT1 for every one existing share owned in HT2.

The acquisition deal will cost an estimated of US$133m, which will help HT1 increase its cement production and raise competition in the local market. After the merger, the firm will be named Vicem Ha Tien Cement JSC with a registered capital of nearly VND2trn.

The merger is part of a larger restructuring plan being implemented by the state-run Vietnam Cement Industry Corporation (Vicem), approved by the government earlier this year.