Thailand’s SCG buys rest of Vietnam’s Long Son Petrochemicals for $90.2m

Thai industrial conglomerate Siam Cement Group (SCG) has signed an agreement to acquire the 29 per cent stake it does not currently own in Vietnam’s Long Son Petrochemicals (LSP) for over VND2.05 trillion ($90.2 million), according to a stock exchange filing by the Thai firm.

Vina SCG Chemicals, a wholly owned subsidiary of SCG, has signed an agreement with Vietnam Oil and Gas Group (PetroVietnam) to acquire the latter’s 29 per cent stake in LSP. The transaction is expected to be completed by the end of June 2018.

With this, SCG now fully owns the $5.4-billion LSP complex. The project is expected to be commissioned in 2023.

The complex was licensed in 2008 at an initial investment capital of $3.7 billion with participation from PetroVietnam, Vietnam Chemical Group (Vinachem) and SCG. VinaChem, however, withdrew its capital and was replaced by Qatar Petroleum International (QPI).

In April 2017, QPI also decided to withdraw its capital from LSP. At that time, SCG, through its wholly-owned subsidiary Vina SCG Chemicals (VSCG), acquired a 25 per cent stake from QPI in LSP Limited, the investor of the LSP Complex, according to a statement published on SCG’s website.

Located in Southern Ba Ria-Vung Tau province in Vietnam, LSP targets to develop a 1 million tonne ethylene cracker with a flexible gas and naphtha feed, creating an olefin capacity of up to 1.6 million tonne per year.

SCG has invested in Vietnam since 1992 in many sectors such as cement, construction materials, petrochemicals and packaging. The group now has 23 subsidiaries operating in Vietnam with about 8,300 employees.

Last year, SCG’s total revenue in Vietnam reached over $1.1 billion.

Also Read:

Thailand’s SCG Chemicals, Polyplex announce new investments in Indonesia

SCG-backed Thai Containers Group buys remaining 25% of packaging firms for $8.4m

Thailand’s SCG makes bid to fully acquire Vietnam’s Long Son Petrochemicals complex 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.