The water sector in Vietnam will witness a spate of mergers and acquisitions in the near future, as many large companies plan to expand into the southern region.
Bình Dương Water Environment JSC (Biwase), a prominent name in the water industry, has approved a plan to acquire stakes in five companies operating in the water and environmental sanitation sectors in Long An and Quảng Bình provinces.
These are DNP – Long An Water Infrastructure Investment Joint-Stock Company, Châu Thành Urban Construction Joint Stock Company, Cần Giuộc Urban Project Joint Stock Company, Bằng Tâm Water And Environment Corporation and DNP Quảng Bình Water Infrastructure Investment Joint Stock Company.
In the above list, there are three companies under the umbrella of DNP holding company, formerly known as Đồng Nai plastic, namely DNP – Long An Water Infrastructure Investment Joint-Stock Company, DNP Quảng Bình Water Infrastructure Investment Joint Stock Company and Châu Thành Urban Construction Joint Stock Company, with ownership percentages of 87.98%, 89.9% and 96.06%, respectively.
Of them, DNP – Long An Water Infrastructure Investment Joint-Stock Company, with a registered capital of VNĐ786.290 million, owns the Nhị Thành Water Plant, with a designed capacity of 60,000cu.m per day and night, which supplies drinking water to many areas in the southern province of Long An.
The DNP holding currently has 15 plastic and clean water factories, with a total capacity of 8,500 tons of plastic products per month and 700,000 cu.m of clean water per day.
Thus, Biwase mainly acquires water supply companies in the DNP holding ecosystem to expand its area of operations to the south.
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In 2022, Biwase invested a total of VNĐ294 billion in the purchase of shares of two companies, namely Cần Thơ Water Supply and Sewerage JSC and Cần Thơ 2 Water Supply JSC. This move has increased the number of Biwase subsidiaries in the water sector to four, with a total investment reaching VNĐ768 billion, representing almost 8% of Biwase’s assets. The company’s M&A plan for this year shows its ambition to scale up through M&A.
The DNP holding currently has 15 plastic and clean water factories, with a total capacity of 8,500 tons of plastic products per month and 700,000 cu.m of clean water per day.
With the ambition to become a leading company in the field of water supply in the South, Biwase continues to acquire companies in the same sector in the southern provinces of Long An, Bình Phước and Bến Tre.
Đồng Nai Water Supply Joint Stock Company plans to acquire 2.5 million shares of Gia Tân Water Supply Joint Stock Company, at the price of VNĐ4,000 per share, with expected dates in the first and second quarters of 2023.
As of December 31, 2022, Đồng Nai Water Supply owns 25% of the capital of Gia Tân Water Supply, equivalent to an investment value of VNĐ50 billion.
Gia Tân Water Supply was established on November 1, 2016, headquartered in Đồng Nai, operating mainly in the field of water exploitation and filtration for daily life, urban and industrial purposes, pumping station installation and pipeline construction. of water supply. The legal representative includes the Chairman of the Board of Directors Hoàng Anh Tuấn and the Managing Director Nguyễn Văn Thiền.
It should be noted that Nguyễn Văn Thiền is also Chairman of the Board of Directors of Biwase, which owns 31.52% of the capital of Gia Tân Water Supply.
Thủ Dầu Một Water Joint Stock Company owns 37.42% of the share capital of Biwase, 20.9% of the capital of Gia Tân Water Supply and 12.06% of Đồng Nai Water Supply.
Thus, Thủ Dầu Một Water cross-owns many water supply companies in Đồng Nai and Bình Dương, through direct or indirect ownership through Biwase. Thủ Dầu Một Water was established in 2013, its core business being clean water business, and currently has a registered capital of VNĐ200 billion.
It can be seen that Biwase’s ambition is also the ambition of Thủ Dầu Một, which is to dominate the market share of water supply in the southern provinces.
Biwase currently has a statutory capital of VNĐ1.93 trillion, own funds of VNĐ4.53 trillion and total assets of VNĐ9.99 trillion. In 2022, the company posted consolidated revenue of VAN 3.48 trillion, consolidated profit after tax of VA 742.7 billion, which equates to basic earnings per share of VA 3.195.
It should be noted that Nguyễn Văn Thiền is also Chairman of the Board of Directors of Biwase, which owns 31.52% of the capital of Gia Tân Water Supply.
Thủ Dầu Một Water currently has a statutory capital of VNĐ1 trillion, own funds of VNĐ2 trillion and total assets of VNĐ2.40 trillion. In 2022, the company achieved consolidated revenue of 478.9 billion, post-tax earnings of 220.4 billion vNĐ, which equates to basic earnings per share of 2,028 vNĐ.
Article republished from the Vietnamese state media VNA in the framework of an agreement between both parties to share content. Link to the original article: https://vietnamnews.vn/economy/1493262/water-industry-to-see-multiple-m-as.html
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