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Kinh Bac likely to buy SaigonTel to improve own services
Kinh Bac City Development, Vietnam’s 7th-biggest publicly traded company, said it may buy Saigon Telecommunication & Technology Corp. to improve telecommunications services within its industrial zones.
Kinh Bac, a real estate and industrial zone developer in Vietnam’s northern province of Bac Ninh, is considering acquiring or merging with SaigonTel this year, Chief Accountant Tran Ngoc Diep said.
“The takeover of SaigonTel will help us to improve the telecommunications infrastructure in our industrial zones, making us more attractive to investors,” Diep said. “The move will also help us acquire some high-tech zones owned by SaigonTel.”
The acquisition plan requires shareholder approval, he said.
Kinh Bac already owns about 19 percent of SaigonTel, according to Diep. The phone company rose 3 percent to close at VND27,300 on the Ho Chi Minh Stock Exchange Tuesday. The stock lost 67 percent of its value last year, giving it a market value of VND1.6 trillion (US$91 million).
Kinh Bac fell 1 percent to close at VND59,400 on the Hanoi bourse on Tuesday.
Bloomberg
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