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.