Thailand’s Stark Corporation acquires Vietnamese cable makers for $240m

Stark Corporation PCL of Thailand is acquiring Vietnam-based Thinh Phat Cables (Thipha) and Dong Viet Non-Ferrous & Plastic (Dovina) for a combined enterprise value of $240 million.

The transaction will be implemented by Stark Corporation’s subsidiary Phelps Dodge International, the SET-listed firm said in a stock exchange filing.

“The overall business of the company and the target companies is similar and complement the company’s core business and also enhance the competitive advantages of the group company for domestic and international markets,” Stark Corporation added.

The group has a market capitalisation of 44 billion baht ($1.3 billion).

Phelps Dodge International produces and exports wires and cables to various countries, while the Vietnamese businesses operate in the same sector and have also reached to several Southeast Asian markets.

The acquisition represents the largest inbound private sector industrial transaction in Vietnam within the last three years, according to BDA Partners, the financial advisor for the deal.

Stark Corporation said it will hold online meetings to finalise the acquisition process in light of the COVID-19 pandemic impact.

Thipha was established in 1987, manufacturing low-to-high voltage power cables and electric wires. It has garnered a presence across both business-to-government and business-to-business market segments.

In 2009, the shareholders of Thipha founded Dovina to import and process copper and aluminum businesses for the production of electrical wires and cables.

Both are among the 100 largest private companies in Vietnam, according to BDA Partners.

This week, another Thai major, Siam Cement, announced it will be acquiring Ho Chi Minh City-based Bien Hoa Packaging. Earlier this year, SK Lubricants purchased a 49 per cent stake of Mekong Petrochemical for $42.1 million.

Meanwhile, another M&A attempt in Vietnam has collapsed, as Aboitiz Power terminated its planned acquisition of wind turbine mill Mekong Wind, even as the Philippine-listed electricity giant had intended to take over the Vietnamese firm for about $46 million.

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.

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

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  • 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. 
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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.