SCGP Completes the Vietnam’s Packaging Firm “SOVI” Deal, Expecting to Book Profit in 2021

SCG Packaging Public Company Limited (SCGP) announced the closing on its consolidation of Bien Hoa Packaging Joint Stock Company (SOVI), a listed company in Vietnam that specializes in corrugated box and offset laminated packaging. This disclosure follows the previous disclosure to The Stock Exchange of Thailand on April 3, 2020.

 

SCGP has acquired 12,076,587 shares or 94.11% in SOVI from the existing shareholders at the price of 171,450 Vietnam Dong per share, which is equivalent to the total payment of 2,070 billion Vietnam Dong, or approximately 2,700 million Baht. This purchase is through TCG Solutions Pte. Ltd., which is a wholly owned subsidiary of Thai Containers Group Company Limited (TCG), a 70:30 joint venture between SCGP and Rengo Company Limited, Japan. The balance sheet consolidation of SOVI will be as at the end of 2020, while the financial performance will be consolidated from January 2021. 

 

SOVI is one of leading fiber based packaging companies whose clients are mainly high growth consumer brands that are multinationals and national champions. With three manufacturing facilities near Ho Chi Minh City, in southern Vietnam, this acquisition will enlarge SCGP’s customer base particularly in food, beverage and FMCG segments and reinforce internal integration with its packaging paper manufacturing. 

 

On a last twelve month basis, SOVI recorded revenue of 1,612 billion Dong (approximately 2,100 million Baht), net profit after tax of 156 billion Dong (approximately 200 million Baht) and had assets of 1,056 billion Dong (approximately 1,380 million Baht) at the end of Q3/2020.

 

SCGP is ASEAN’s largest comprehensive packaging solutions provider, offering fiber-based packaging, performance & polymer packaging and other diversified solutions with over 40 facilities across Thailand, Vietnam, Indonesia, the Philippines and Malaysia.