08:06 (GMT +7) - Monday 10/12/2018

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PHI Group closes acquisition of Vinafilms JSC

Released at: 09:56, 11/10/2018

PHI Group closes acquisition of Vinafilms JSC

A product made by Vinafilms JSC (Photo from vinafilms.com.vn)

US group picks up 51% of Vietnamese provider of plastic film products.

by Doanh Doanh

The PHI Group, Inc., a diversified US holding company focused on mergers and acquisitions (M&As) and investments in select industries and special situations, announced on October 11 it has closed the acquisition of 51 per cent of the Vinafilms JSC.

According to a stock swap agreement dated September 20 between the group and Vinafilms’ majority shareholder, the group issued 50 million shares of its Class A Series III Preferred Stock in exchange for the 51 per cent.

“We are pleased to have closed this transaction and believe that the consolidated operating results from this acquisition should add significant value to both companies going forward, including the potential of uplisting to a senior exchange,” said Mr. Henry Fahman, Chairman and CEO of the PHI Group.

Vinafilms has been in business for more than 13 years and provides a variety of plastic film products, including PE film macromolecules, PE films, polyester and polyprolylene films, metalized films, etc. for use in construction, food packaging, textile products, pharmaceuticals, and many other goods. These films include many types of coatings, such as silicone, adhesive, pre-mask, corona, print treatments, and others for labels, printing, and flexible packaging purposes.

Vinafilms’ customers include many reputable and loyal Vietnamese and international companies, such as the Saigon Plastic Packaging Co., KyVy, Huhtamaki, I.S., Vinamilk, Tribeco, the Trieu Chen Co. Ltd., Friesland Campina, the Tong Yuan Packaging Co., and PepsiCo.

In accordance with Vinafilms’ domestically audited annual report containing financial statements for the year ended December 31, 2017, it generated $25 million in revenues and $765,000 in EBITDA in 2017. It has recently installed a German state-of-the-art plastic film processing system and will add two more of these to meet growing domestic and international demand for its products.

Vinafilms also plans to enter into a joint venture with a leading Vietnamese plastic bag manufacturing company with the aim of bringing combined revenues to over $150 million per year by the end of 2019. The PHI Group’s management believes the acquisition of Vinafilms, subject to the meeting of compliance standards, should enable it to qualify for an uplist to the Nasdaq Stock Market in the very near future.

The group’s wholly-owned subsidiary, American Pacific Plastics, Inc., will hold the 51 per cent interest in Vinafilms and plans to file a registration statement with the Securities and Exchange Commission for it to become a separate, fully reporting, publicly-traded entity to serve as a platform to facilitate financing Vinafilms’ growth and accelerate its rollup strategy.

“We look forward to being able to use the US public company platform to access international capital markets to finance both organic growth and potential accretive acquisitions for Vinafilms in the near future,” said Ms. Do Thi Nghieu, Chairperson and majority shareholder at Vinafilms.

The PHI Group primarily focuses on M&As and invests in select industries and special situations that may substantially enhance shareholder value. Its wholly-owned subsidiary, PHI Capital Holdings, Inc. provides M&A consulting services and assists companies to go public and access international capital markets.

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