SCG pays B5.46bn for Vietnam cement firm

SET-listed industrial conglomerate Siam Cement Group (SCG) has paid 5.46 billion baht for a 100% stake in a Vietnamese cement producer.
President and chief executive Roongrote Rangsiyopash said the acquisition was done via SCG Cement-Building Materials Co Ltd, a wholly-owned subsidiary of SCG.
It paid 5.46 billion baht to acquire all shares in Vietnam Construction Materials JSC (VCM), which is an integrated cement operator in central Vietnam, from the existing owners.
The enterprise value (EV) of this transaction was US$440 million, or around15.4 billion baht, including net debt and additional efficiency improvement investment to the acquired assets. With the new cement production capacity of 3.1 million tonnes acquired in central Vietnam, there is potential for further efficiency enhancements to the total capacity, the company said in a statement.
Following this transaction, SCG’s combined cement capacity across Asean will rise to 10.5 million tonnes per annum, excluding its current production capacity in Thailand of 23 million tonnes a year.
“Furthermore, SCG’s efforts are in place to continually ensure that the integrated business and community model remains across Asean,” Mr Roongrote said in the statement.

Source: http://www.bangkokpost.com/business/news/1210357/scg-pays-b5-46bn-for-vietnam-cement-firm