Saigon Paper sells 38% stake to Japanese firms

Japan's Daio Paper Corporation and BridgeHead fund picked up a 38 per cent stake in the joint-stock Saigon Paper Corporation (SGP) on Wednesday.

Their individual stakes and the share price have not been disclosed, but following the deal, which involved sale of both existing and new shares, the local company has a charter capital of VND300 billion (US$14.5 million).

SGP Chairman Cao Tien Vi said the Japanese partners were planning to make further investments in his company.

They would also provide technological, management, and training support.

SGP is the largest private paper producer in Viet Nam with a 24 per cent market share of the tissue-paper market. It is also one of the top five producers of industrial packaging paper.

Last year it reported a turnover of VND725 billion, a 24-per-cent increase over 2009.

The company currently has an annual capacity of around 90,000 tonnes, but in June it will inaugurate a new factory with a capacity of 230,000 tonnes.

Daio is the third largest paper producer in Japan with sales of $5 billion last year.

BridgeHead is operated by the Development Bank of Japan, a leading State-owned lender with assets of $190 billion last year.

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