The share price of Indorama Ventures Public Company Limited (SET: IVL) rose ฿2.00/share or 4.40% to ฿47.50/share in the early session on Tuesday.
The increase in share price came after the company made an official announcement yesterday that it, through its affiliate, Indorama Netherlands B.V., is in the process of acquiring potentially all of the shares of Ngoc Nghia Industry – Service – Trading Joint Stock Company (NN), an UPCoM (Unlisted Public Company Market) registered entity on the Hanoi Stock Exchange (HNX).
IVL added that the acquisition process is required to follow the Law on Securities, its guiding decrees and circulars as required by State Securities Commission of Vietnam and regulations of the Hanoi Stock Exchange (HNX). As such, IVL and/or its affiliate would be required by the said regulations to do the tender offer of all of NN’s shares. The Tender Offer will be at the price of 26,219 Vietnam Dong per share. The Tender Offer cost is expected to be at the maximum of 1,734,933,343,772 Vietnam Dong, or equivalent to approximately THB2,503 million.
This proposed acquisition is part of the company’s strategy to further extend its market position in the packaging business segment and expand its footprint in high growing markets (like Vietnam) in Asia and Africa.
According to Refinitiv, 13 brokers gave “Buy” recommendations and 2 “Holds” with no “Sell”. The consensus target price is THB56.29 per share.
