Sacombank, Sacomreal buy into steel maker

A ceremony to sign an investment cooperation contract between Huu Lien A Chau Joint Stock Co, one of the country’s leading steel manufacturers, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) and Saigon Thuong Tin Real Estate Joint Stock Co (Sacomreal) is to be held in HCM City today July 20.

With the consultancy of Saigon Securities Inc (SSI), Huu Lien A Chau will become a new investment partner of Sacombank and Sacomreal in Vietnam, marking the first investment between two large financial institutions in steel pipe and stainless steel pipe production.

Under the contract, Sacombank will hold a 7% stake and Sacomreal another 3% stake of Huu Lien A Chau whereby the steel manufacturer will launch its new business strategies and projects.

Last year, Huu Lien A Chau JSC’s total revenue last year reached 769 billion dong, which is targeted at 870 billion this year, and about 915 billion dong in 2008.

In addition, the company plans to list on the Ho Chi Minh Stock Exchange (STC) by 2008 and targets to grow 5-7% annually, said the general director Tran Tuan Nghiep.

 

Category: Stocks