Stirr Japan in talks to acquire 51% of Vietnam’s Petrolimex Taxi

Saigon Petrolimex Gas Taxi JSC (Petrolimex Taxi) will probably sell 51 per cent of its own shares to Stirr Japan.

The decision was take at the Vietnamese firm’s shareholder meeting on Friday. The process is still in talks.

In fact, Stirr Japan proposed the acquisition last year. Currently, it is holding some 20 per cent in the taxi operator.

Nguyen Ngoc Minh, a member of Petrolimex Taxi’s board of directors, said: “The Japanese partner is broadly influential in the tourism market (it is running six hotels in Vietnam). So the combination of Skirr Japan and us would create lots of opportunities to expand to another vertical, especially targeting the Japanese market.” In addition, the Ho Chi Minh City-based company is also thinking of labour export to this country.

However, the most highlighted point, Minh noted, will be the management expertise of the foreign partner in assisting the company to grow. Shareholders have approved half of the new board, who are Japanese executives.

Bui Van Thanh, a former board member, revealed that Skirr Japan agreed to purchase the shares at VND10,050 ($0.46) for each, that is higher than last year’s offer of VND9,000. Meanwhile, Petrolimex Taxi’s stock price is currently traded at only VND7,000.

However, the deal can only be closed once the Vietnamese government agrees to lift the cap of 49 per cent foreign ownership in listed companies.

The Vietnamese taxi firm targets a 27 per cent increase in revenue, to reach VND51 billion. However, profit is expected to declined 37 per cent compared to last fiscal to just VND6.5 billion. The company still records accumulated loss.

To achieve the goal of profitability this year, it is planning to acquire another taxi operator, which will help generate a profit portion worth VND2.6 billion for the last part of 2015. Other way, Petrolimex Taxi may buy new cars and put for rent.

In terms of corporate management, the company is positive that the performance in the second half will improve, with the presence of the Japanese partner in the board.

Related stories:

Vietnam’s Muong Thanh Group acquires hotel and tourism firm Phuong Dong

Vietnam’s Petrolimex to sell 20% to Japanese partner to reduce state holding

Vietnam’s Duc Long Gia Lai to acquire UK-based Mass Noble

Luxembourg-based Eurofins Scientific acquires 65% in Vietnam’s Sac Ky Hai Dang lab

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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.