TCG Solutions Pte, a subsidiary of Thai conglomerate Siam Cement Group (SCG), has announced its intention to purchase over 12 million shares or 94.11% stake of Bien Hoa Packaging (Sovi), which currently does not have a foreign ownership limit.

Thai conglomerate Siam Cement Group (SCG) plans to purchase over 12 million shares or 94.11% stake of Bien Hoa Packaging.

The transaction period is set to take place via the Vietnam Securities Depository (VSD) from December 16-31.

The value of the transaction has not been disclosed, but given the market share price of VND77,000 (US$3.33) per unit, TCG could fork out more than VND920 billion (US$39.8 million) for the deal.

In fact, the announcement for acquisition proves to be a formality as existing Vietnamese members of board of directors and supervisory board have resigned and were replaced with Thai personnel from TCG during the Extraordinary General Meeting of Shareholders on December 9.

Among new personnel, Ekarach Sinnarong was appointed as Chief Executive Officer (CEO) cum Legal Representative of the company for 2020-23 tenure and TCG Solutions Director Suchai Korprasertsri as new Sovi President.

Sovi’s new board of directors is comprised of nine members, including five Thais, two Japanese and one Vietnamese.

SCG is one of Southeast Asia’s top conglomerate in fields of cement – construction materials, chemicals and packaging.

In Vietnam, SCG was involved in dozens of merging and acquisitions (M&A) activities over the last 30 years with the acquisition or stake purchase at Prime Group, Tin Thanh Packaging, Binh Minh Plastic, and Long Son Petrochemicals complex.