Viettel Group acquires 70% stake in Vietnamese producer

Military-run Viettel Group has acquired a 70 per cent stake of Vietnamese cement producer Cam Pha Cement for VND140bn ($6.64m).

The 139.8m shares were purchased from Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) at around VND1,000 each, the current book value of the cement firm, the Thoi Bao Kinh Te Sai Gon newspaper reported.

Viettel, which holds a 21.3 per cent stake in Vinaconex, will pay Cam Pha Cement’s debts and help the latter restore its manufacturing activities, therfore the total value of the deal is US$127m.

Vinaconex will cut its holding in the loss-making cement unit to 30 per cent and quit debt burden. Vinaconex has paid VND2.4trn worth of debts owed by Cam Pha Cement.