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BUSINESS SPOTLIGHT

An Phat Holdings in a host of landmark deals in 2018

Released at: 16:42, 17/12/2018 BUSINESS SPOTLIGHT

An Phat Holdings in a host of landmark deals in 2018

Photo: An Phat Holdings

Busy year for major local plastics player.

by Ngoc Lan

An Phat Holdings (APH) has featured in a string of landmark deals throughout this year.

APH was founded by the leadership team at the An Phat Plastic and Green Environment JSC (AAA) in March 2017, with the initial target of taking control of AAA as a long-term investment. From late May 2017, it began to buy AAA stocks from its key leaders, then acquired AAA’s warrants in a bid to possess at least 51 per cent of the company’s charter capital. APH currently is the largest shareholder of AAA, through a holding of 46.62 per cent.

Far from its initial target of just taking a controlling stake in AAA, APH has been conducting major deals and helping to revitalize multi-million-dollar projects that had seemingly sunk into oblivion.

In March 2018, the An Phat High-Tech JSC, a subsidiary of AAA and a member unit of APH, injected VND756 billion ($32.8 million) into buying the 46-ha Viet Hoa-Kenmark IP in the northern province of Hai Duong.

After acquiring the IP, AAA and APH changed its name to the An Phat Complex, which engages in producing high-tech and environmentally-friendly plastic products with VND2.056 trillion ($89.4 million) in total investment and is expected to employ 6,000 workers.

Under plans, the An Phat Complex will complete the upgrading of the IP’s infrastructure and the five workshop blocs will be able to begin production in July 2020.

The executives said they want to attract domestic and foreign investors and build modern IP infrastructure to serve the group’s projects and diversify its fields of operation to hit $1 billion in revenue in the not-too-distant future.

In May, the Dinh Vu Polyester Plant (PVTex) signed a business cooperation contract with APH and several other foreign partners to start commercial operations of its filament production workshop worth $325 million.

On July 24, PVTex and the An Son JSC, which was authorized by APH, signed a dried texture yarn (DTY) processing contract, debuting the business cooperation between the sides and the entire commercial operation of PVTex.

Under the agreement, the parties have reached consensus on raising three additional DTY production lines to have 25 in total, with a combined capacity surpassing 60 tonnes of yarn per day, equal to about 1,800 tonnes per month. PVTex’s management authority, PetroVietnam, was reported to have agreed with APH on selling at least 35 per cent of the polypropylene (PP) output from its Binh Son Refining Petrochemical JSC to APH for five to ten years within the framework of PVTex’s restructuring.

APH has recently completed acquiring nearly 52 per cent in the Hanoi Plastics JSC (ticker NHH) from Cadivi Dong Nai Limited.

In addition, APH has acquired the Hanoi Plastic JSC, a long-standing business producing plastic motorbike and auto components that has several foreign-backed car and electric firms as long-term customers, such as Honda Vietnam, Piaggio Vietnam, Toyota Vietnam, Panasonic, and LG.

APH then shook hands with VinFast to establish VinFast-An Phat (VAPA) Limited, with charter capital exceeding VND420 billion ($18.2 million). The new firm, at the VinFast auto manufacturing complex in the Dinh Vu-Cat Hai Economic Zone in northern Hai Phong port city, has the main function of manufacturing parts and other auxiliaries for autos and other motorized vehicles.

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