A production line of Prime Group, now 85% owned by SCG. (Photo: www.hablarvietnam.com)
Siam Cement Group (SCG
) has approved the proposal of its wholly owned subsidiary SCG Building Materials to acquire the remaining 15% stake of Prime Group and related assets for Bt2.19 billion ($61.24 million), the Nation newspaper cited a SCG filing as saying.
SCG in December 2012 closed a deal to acquire an 85% stake in Prime Group, the largest ceramic tile in Vietnam, for Bt7.2 billion (roughly $240 million).
The Thai firm has recently said it would go ahead with its $4.5 billion Long Son petrochemical complex in the southern province of Ba Ria-Vung Tau despite the withdrawal of Qatar International Petroleum.
The project will be delayed by at least six months while it looks for another partner by the first half of this year. “We need to find new partner for the Vietnamese project, and that will take time,” said Roongrote Rangsiyopash, the group’s newly-appointed president and chief executive.
Roongrote Rangsiyopash, SCG's president and chief executive. (Photo: SCG)
SCG saw revenue up 7% year-on-year to 14.1 trillion dong ($638 million) in Vietnam in its fiscal year 2015, the firm said in a press release.
The group’s Vietnam assets amounted to $737 million at the end of 2015, rising 17% from a year earlier.
SCG’s operating profit leaped 35% to Bt45.4 billion ($1.27 billion) last year, thanks to the wide margins for petrochemical products. Sales slipped 10% to Bt439.6 billion ($12.3 billion) on a big decline in oil prices.