SAM Holdings (HOSE: SAM) has announced the divestment of entire 30% equity from Taihan-SACOM Cable joint venture (TSC – co-operation unit between Sacom Investment & Development JSC (SACOM) and Korean Public Taihan cable manufacturing company), for Taihan Electric Wire on April 29th,2016 with the transferred price of 7.7 million dollars (approximately 171.6 billion VND). So far, Taihan Electric Wire has paid 80% of the contract, equivalent to 137.3 billion VND and expected to complete the whole payment in late June, 2016.
It is reported that TSC factory was constructed on March 9th, 2016 at Long Thanh Industrial Zone, Long Thanh District, Dong Nai province with the total investment of over 445 billion VND and 15-hectare size.
With the initial investment value of 133.7 billion VND, after the divestment from TSC is completed, SAM will earn 37.9 billion VND profit and 20.6 billion VND provision reversal for investment in TSC. Thus, profit of the divestment from the TSC will be recorded in quarter 2/2016 is 58.5 billion VND, fulfilling 48% of 2016’s profit plan approved by the General Assembly of Shareholders.
According to Hai Duong Nguyen – chairman of SACOM, wire and cable industry is the core business in Sacom’s long-term development strategy. In 2016, SACOM aims for a revenue of more than 2,500 billion VND, approximately 12.8% out of total revenue. Aside from cables and wires, the company’s real estate department also sets the goal of filling as much as possible the office building and hotel areas, deploying apartment and office complex projects.
By Ha Phuong.
