SCG Packaging Public Company Limited (SET: SCGP) announced the completion of merger and partnership (M&P) investment for the 70% shares in Starprint Vietnam JSC (SPV). This transaction follows the previous disclosure to The Stock Exchange of Thailand on April 25, 2023.
Payment for the 70% stake is the immediate VND 676.08 billion (approximately THB 987.07 million). This transaction will be made through SCGP Solutions (Singapore) Pte. Ltd. (SCGPSS), which is a wholly owned subsidiary of SCGP. Additionally, SCGPSS and the sellers are entitled to the right to acquire and sell, respectively, the remaining 5% stake in SPV at predefined formula identified in the transaction documents. SPV’s financial performance will be consolidated from January 2024 onward.
SPV is a leading offset folding carton packaging manufacturer in Vietnam, with combined capacity of 16,500 tons of offset printing per year and 8 million pieces of rigid boxes per year, with two manufacturing facilities located in Long Binh (Amata) Industrial Zone, Dong Nai in southern Vietnam. Its clients are concentrated in multi-national companies which are mainly linked with high-growth fast-moving consumer products.
SCGP stated that this transaction will enhance SCGP’s packaging solutions capabilities to serve an enlarging customer base in Vietnam and ASEAN while reinforcing chain integration across the region. SPV will be SCGP’s first rigid boxes facility in ASEAN and the company’s first offset folding carton production in Vietnam. SPV recorded revenue of VND 1,013 billion (approximately THB 1,480 million), net profit after tax of VND 92.5 billion (approximately THB 135 million), and assets of VND 601 billion (approximately THB 885 million) at the end of FY2022.
The acquisition of a new subsidiary in SPV would equal to 0.5% of total assets stated in SCGP consolidated financial statements as of September 30, 2023 and when combined with those in the past six months before the date of this transaction, the total size is 1.28%. Thus, the investment disclosure is not required under the disclosure rule for the acquisition and disposition of assets. This transaction is not a connected transaction.
