The Netherlands' Damen Shipyards Group is expected to buy at least 70percent of the stake of Song Cam Shipbuilding Joint Stock Company,reported VnExpress online.
Song Cam is headquartered in thenorthern city of Hai Phong. The company is an affiliate of theShipbuilding Industry Corporation (SBIC), which was establishedfollowing a Transport Ministry decision in October 2013. The decisionwas based on the restructuring of the insolvent Vietnam ShipbuildingCorporation.
SBIC sources revealed that the corporation plansto select Damen as a strategic partner as part of its equitisation anddevelopment schemes, which it adopted this year.
Vietnam'scurrent regulations impose a 49 percent limit on foreign investors whointend to share ownership in the domestic stock market. As such, SongCam and the Dutch firm would have to apply this cap if the shareacquisition is carried out.
However, the corporation haspetitioned Prime Minister Nguyen Tan Dung and the Transport Ministry foran exception to push through with the 70 percent deal.
Anunnamed leader of the SBIC told VnExpress that the corporation is stillwaiting for a response from the government office regarding thepetition. In addition, the source disclosed that a specific value forthe deal could not be revealed yet as "negotiations are (still)underway."
"If the proposal is adopted, we expect to concludenegotiations on the value of the deal by mid-January 2015," the officialsaid. The official also added that a successful stake transfer wouldnot only serve the restructuring process but would also help SBICenhance capacities related to management, technology and marketdevelopment.
Damen and Song Cam jointly established the60-million EUR Damen Song Cam shipbuilding factory in Hai Phong lastMarch, with 70 percent of the amount coming from the Netherlands.
Damen has also offered to buy the majority of the stakes atanother SBIC member, Ha Long Shipbuilding Company, when this firmlaunches an initial public offering. The event is expected to be heldearly next year, according to the news website.
The Dutch company began its cooperation with Vietnam Shipbuilding Corporation, or Vinashin, more than 10 years ago.-VNA
Song Cam is headquartered in thenorthern city of Hai Phong. The company is an affiliate of theShipbuilding Industry Corporation (SBIC), which was establishedfollowing a Transport Ministry decision in October 2013. The decisionwas based on the restructuring of the insolvent Vietnam ShipbuildingCorporation.
SBIC sources revealed that the corporation plansto select Damen as a strategic partner as part of its equitisation anddevelopment schemes, which it adopted this year.
Vietnam'scurrent regulations impose a 49 percent limit on foreign investors whointend to share ownership in the domestic stock market. As such, SongCam and the Dutch firm would have to apply this cap if the shareacquisition is carried out.
However, the corporation haspetitioned Prime Minister Nguyen Tan Dung and the Transport Ministry foran exception to push through with the 70 percent deal.
Anunnamed leader of the SBIC told VnExpress that the corporation is stillwaiting for a response from the government office regarding thepetition. In addition, the source disclosed that a specific value forthe deal could not be revealed yet as "negotiations are (still)underway."
"If the proposal is adopted, we expect to concludenegotiations on the value of the deal by mid-January 2015," the officialsaid. The official also added that a successful stake transfer wouldnot only serve the restructuring process but would also help SBICenhance capacities related to management, technology and marketdevelopment.
Damen and Song Cam jointly established the60-million EUR Damen Song Cam shipbuilding factory in Hai Phong lastMarch, with 70 percent of the amount coming from the Netherlands.
Damen has also offered to buy the majority of the stakes atanother SBIC member, Ha Long Shipbuilding Company, when this firmlaunches an initial public offering. The event is expected to be heldearly next year, according to the news website.
The Dutch company began its cooperation with Vietnam Shipbuilding Corporation, or Vinashin, more than 10 years ago.-VNA
