The joint venture of Wagan Corporation, GHN Group, and Masters Depot and domestic firm Tin Thanh Group Company Limited are looking to co-operate with each other to enhance and expand Dung Quat Refinery.
On August 28, the joint venture and Tin Thanh joined a working session with Binh Son Refining and Petrochemical Co., Ltd. (BSR), the investor of Dung Quat Refinery, to look for an investment opportunity in the expansion of the refinery. The parties discussed plans for the input and output of the plant as well as technology to be applied.
The expansion is expected to be completed in 2020 and upon completion, the expanded refinery’s capacity will increase by 30 per cent or two million tonnes a year, to 8.5 million tonnes. It will be able to meet half of Vietnam’s fuel demand.
It is not the first time that Tin Thanh expressed interest in joining Dung Quat Refinery. In November 2017, the group publicly announced its ambition to spend VND40 trillion ($1.76 billion) on buying a 55 per cent stake to become BSR’s strategic investor, while the company only had a charter capital of VND200 billion ($8.8 million).
According to information published on BSR’s website, Tin Thanh Group planned to buy a 5 per cent stake in BSR in 2017. The deal would cost around VND3.6 trillion ($158.5 million). Then, Tin Thanh and BSR will propose the prime minister to allow the firm to increase its holdings to 55 per cent in BSR. However, to date, no more information has been published.
Masters Depot and Wagan specialise in manufacturing auto applications, solar products, and power supplies.
GHN Group operates in building and maintenance in the petrochemical, petrol, and power sectors.
On January 17, BSR reported a successful initial public offering (IPO) with a complete take-up of the offered shares and a record selling price of VND14.8 million ($651.69) per share.
The average selling price was VND23,043 ($1.01), 57.8 per cent higher than the initial price. The lowest selling price was VND20,800 ($0.92). Of particular note, an individual investor succeeded in buying 10,000 shares at the record price of VND14.8 million ($651.69) apiece.
BSR earned VND5.57 trillion ($245.26 million) in proceeds, 1.5 times higher than its expectations.