Stark Corporation PCL of Thailand has completed the purchase of 100 per cent equity in Thinh Phat Cables JSC (Thipha) and Dong Viet Non-Ferrous & Plastic JSC for $240 million.
The transaction was implemented by Stark Corporation’s subsidiary Phelps Dodge International (Thailand) Co., Ltd., a leading Thai and Southeast Asian wire and cable manufacturer.
According to newswire Dealstreestasia, the overall business of the company and the target companies is similar and complement the company’s core business and also enhance the competitive advantages of the group in domestic and international markets.
The transaction represents the largest inbound private sector industrial transaction in Vietnam in the last three years. according to Mergermarket. It reflects the continued attractiveness of the Vietnamese domestic market, and Vietnam’s strong regional position within the ASEAN.
Thipha is the second-largest manufacturer of electrical cables and wires in Vietnam, with a business presence throughout Vietnam and Southeast Asia. It has established strong market positions across the business-to-government and the business-to-business market segments both domestically and overseas. Dovina manufactures copper wire, copper rods, aluminum rods, and processes PVC and XLPE compound plastic products. They are among the 100 largest private companies in Vietnam.
Stark Corporation is a publicly-listed investment holding company which focuses on investment in manufacturing and services in the industrial sector. Its core subsidiary, Phelps Dodge International (Thailand) Co., Ltd., is a wire and cable manufacturer with a track record spanning five decades and a reputation for the highest quality and world-class standards. PDITL is a market leader in Thailand and Southeast Asia, and is recognised in both local and international markets in over 30 countries around the world.
According to information released by ABB Vina Cable, among more than 200 electric wire production and trading enterprises across the country, only about 20 per cent have products that meet TCVN standards and have invested in building and branding, the rest are industrial enterprises.