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.