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Korean retailer finds local partner
South Korean clothing retailer E-Land Group has become the foreign strategic partner of Viet Nam’s Thanh Cong Textile & Garment Joint Stock Co (TCG), after acquiring a 30 per cent stake in the company, Thanh Cong announced.
E-Land Asia Holdings, the local subsidiary of E-Land Group, acquired more than 10 million Thanh Cong shares in March at face-value price. Korean company’s strategic director Lee Eun Hong has also been named the new general director of Thanh Cong.
The acquired shares were the undersubscribed amount from an issue of bonus shares to existing shareholders, which had aimed to raise the company’s charter capital to VND350 billion (US$19.7 million), Tran Thi Ha of Thanh Cong’s administrative department told Viet Nam News by phone.
E-Land Asia Holdings has proposed buying an additional 6 million shares, raising its total interest to nearly 40 per cent, Ha said. "We are currently waiting for the State Securities Commission to approve the extra acquisition," she said.
The partnership with E-Land Asia Holdings would help Thanh Cong explore new sector of retail clothing in the domestic market, said Thanh Cong chairman Ding Cong Hung, noting that the company planned to open a retail chain of stores by the end of 2010.
Thanh Cong projects profits of VND60 billion ($3.4 million) this year and will pay a dividend of 12 per cent on last year’s earnings. TCG shares yesterday closed up 3.55 per cent to VND14,600 each.
vietnamnews
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