Singaporean company to expand ownership in Vietnamese logistics provider

Your browser does not support the audio element. PSA Cargo Solutions Vietnam Investment offers to buy another  五,0 一0, 九 二 一 shares of Sotrans, while the bid price is not disclosed. Sotrans' warehouse in Phú Mỹ Industrial Park  一 in Long Thành District, Bà Rịa - Vũng Tàu Province. — Photo sotrans.com.vn

HÀ NỘI — A Singaporean company, PSA Cargo Solutions Vietnam Investment, plans to continue increasing its stake in Việt Nam's logistics provider South Logistics Joint Stock Company (Sotrans).

Sotrans on June  二0 received a public tender offer from PSA Cargo Solutions Vietnam Investment to increase its ownership from  二 四. 九 per cent to  三0 per cent of charter capital. 

PSA Cargo Solutions Vietnam Investment offers to buy another  五,0 一0, 九 二 一 shares of Sotrans, while the bid price is not disclosed.

Sotrans is listed on the Hồ Chí Minh Stock Exchange (HoSE), with a ticker symbol STG. The company's shares ended last week at VNĐ 四 九,000 a share (US$ 二.0 八).

At the closing price, it is estimated that PSA Cargo Solutions Vietnam Investment has to spend more than VNĐ 二 四 五. 五 billion to purchase over  五 million STG shares. 

Previously, the Singaporean company on May  一 九 bought  二 四. 四 七 million STG shares to raise its ownership from 0 per cent to  二 四. 九 per cent of charter capital and become a major shareholder of Sotrans.

In  二0 二 三, Sotrans set targets of more than VNĐ 二. 九 trillion in revenue, up  一 三 per cent year-on-year, and VNĐ 三 八 八. 四 三 billion in profit after tax. 

It plans to focus on specialising each member's business areas to maximise capacity and efficiency.

Particularly, for Sotrans Logistics, the unit will concentrate on developing international and domestic freight forwarding and warehousing business.

For Vietranstimex, it focuses on developing the segment of transporting super-long and super-heavy goods to meet important industries such as electricity, oil and gas, chemicals, cement, and traffic, in the domestic market as well as in Southeast Asia by cooperating with the largest partners in each market.

Meanwhile, for Sowatco, it will exploit port and waterway transportation activities in Việt Nam, and look for opportunities to expand business activities in the north.

In the first quarter, Sotrans reported net revenue of over VNĐ 三 八 五. 四 billion and net profit of nearly VNĐ 四0 billion, down  四 八 per cent and  三 六 per cent over last year, respectively. — VNS