US-based PHI Group has agreed to acquire 51% stake in Vinafilms Joint Stock Company (JSC) for an undisclosed sum.
The firm has entered into an agreement to purchase stake of Vinafilms preferred stock of PHI Group.
As part of the stock swap agreement, PHI will issue 50 million shares of its class A series III preferred stock in exchange for 51% of Vinafilms JSC. The transaction is expected to be completed by the end of this month.
PHI Group will utilize its wholly-owned subsidiary American Pacific Plastics as the special-purpose vehicle to hold the 51% stake in Vinafilms.
Vinafilms JSCchairperson and majority shareholder Do Thi Nghieu said: “We believe by joining forces with PHI we will be better positioned to tap the U.S. and international capital markets and take advantage of our combined strengths to implement both organic growth and acquisition plans for Vinafilms in the near future.”
Vinafilms offers different plastic film products such as PE film macromolecules, PE films, polyester and polyprolylene films, metalized films, which can be used use in food packaging, construction, textile products, pharmaceuticals and other products.
The film products comprised of different types of coatings such as silicone, adhesive, pre-mask, corona, print treatments, as well as products for labels, printing, and flexible packaging purposes.
Vinafilms serves international companies such as Saigon Plastic Packaging, KyVy, Huhtamaki, Vinamilk, Tribeco, Trieu Chen Friesland Campina, Tong Yuan Packaging and PepsiCo.
Recently, the company has invested in an advanced plastic film processing system to expand its production operations. It is also planning to add two more similar machines to meet the domestic and international demand for its products.
The firm intends to enter into a joint venture with major Vietnamese plastic bag manufacturing firm, in a bid to achieve combined revenues of over $150m per year by the end of 2019.
PHI Group chairman and CEO Henry Fahman said: “We expect to close this transaction before month’s end and believe that the consolidated operating results from this acquisition should have a very positive impact on our company going forward.”