(CPV)- In Hanoi, today April 28, VinaCapital Group and Prime Group signed a strategic alliance agreement that will see the VinaCapital Vietnam Opportunity (VOF) invest 15 million USD in Prime Group in return for a minority equity stake.
Prime Group is a Vietnam’s leading ceramics manufacturer, with 8 ceramic tile factories and a nationwide distribution network via 100 distributors and 30,000 retail locations, thus resulting in more than 30% market share.
VinaCapital’s investment (accounting for 7% of the 1,019 billion VND charter capital) comes as Prime Group is preparing to list its shares publicity, expected in the third quarter this year.
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Mr Andy Ho (left) and Mr Nguyen Van Nghia shaked hand at the press
conference held in Hanoi today April 28. (Photo ATP) |
Andy Ho, VinaCapital’s head of investment said: “In Vietnam, VinaCapital is mainly concentrating into 4 fields of education, mining, real estate and construction materials. We believes Prime Group has solid management and an established reputation in the market place. Most importantly, they can rely on economies of scale to offer the best products at competitive prices. In the future, if Prime Group runs its businesses smoothly, we should consider further investment”.
Vietnam’s urbanization process is moving rapidly in the last few years. It is a long-term trend, and providing the foundation for Prime’s growth.
According to Mr Nguyen Van Nghia, Prime Group Vice Chairman of Board of Directors, the Group wants to maintain its leading position in the construction materials sector, and it needs strong/capable strategic investor to realize its slogan “Prosperity is Prime”.
Prime Group is expected to earn a growth rate of over 25% each year for the next three years, with a new factory is going to operate in 2011. At this time, it will meet the great demand of the customers domestically, as well as partly for export.