PHI Group, a US diversified holding company, has completed the acquisition of 51% of Vinafilms Joint Stock Company.
According to the Stock Swap Agreement dated September 20, 2018 between the Company and Vinafilms’ majority shareholder, PHI Group issued 50 million shares of its Class A Series III Preferred Stock in exchange for 51% of Vinafilms JSC.
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 Saigon Plastic Packaging Co., KyVy, Huhtamaki, I.S., Vinamilk, Tribeco, Trieu Chen, Friesland Campina, 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 the growing domestic and international demand for its products.
Vinafilms also plans to enter a joint venture with a leading Vietnamese plastic bag manufacturing company with an aim to bring combined revenues to over $150 million per year by the end of 2019.
PHI Group’s management believes the acquisition of Vinafilms, subject to the Company’s meeting compliance standards, should enable PHIL to qualify for an uplist to the Nasdaq Stock Market in the very near future.
PHI Group’s wholly owned subsidiary American Pacific Plastics, Inc. will hold the 51% 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.
PHI Group chairman and CEO Henry Fahman said: “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.”
Vinafilms JSC chairperson and majority shareholder Do Thi Nghieu said: “We look forward to being able to use the U.S. public company platform to access international capital markets to finance both organic growth and potential accretive acquisitions for Vinafilms in the near future.”
Source: Company Press Release