Singapore firm to expand ownership in Vietnamese logistics provider

By VNA   June 27, 2023 | 12:16 am PT
Singapore firm to expand ownership in Vietnamese logistics provider
Sotrans warehouse in Phu My Industrial Park 1 in Long Thanh District, Ba Ria - Vung Tau province. Photo courtesy of of the company
Singaporean company PSA Cargo Solutions Vietnam Investment plans to continue increasing its stake in Vietnam’s logistics provider South Logistics Joint Stock Company (Sotrans).

Sotrans on June 20 received a public tender offer from PSA Cargo Solutions Vietnam Investment to increase its ownership from 24.9% to 30% of charter capital.

PSA Cargo Solutions Vietnam Investment offers to buy another 5,010,921 shares of Sotrans, while the bid price is not disclosed.

Sotrans is listed on the Ho Chi Minh Stock Exchange (HoSE), with a ticker symbol STG. The company's shares ended last week at VND49,000 VND ($2.08) a share.

At the closing price, it is estimated that PSA Cargo Solutions Vietnam Investment has to spend more than VND245.5 billion to purchase over 5 million STG shares.

Previously, the Singaporean company on May 19 bought 24.47 million STG shares to raise its ownership from 0% to 24.9% of charter capital and become a major shareholder of Sotrans.

In 2023, Sotrans set targets of more than VND2.9 trillion in revenue, up 13% year-on-year, and VND388.43 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 Vietnam, and look for opportunities to expand business activities in the north.

In the first quarter, Sotrans reported net revenue of over VND385.4 billion and net profit of nearly VND40 billion, down 48% and 36% over last year, respectively.

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