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S’pore, U.S. firms buy into Hoa Binh Corp.

VietNamNet Bridge – Singapore's Chip Eng Seng Corp. and the U.S.-based Citadel Investment Group on Tuesday acquired one million shares of local leading construction company Hoa Binh Corporation (HBC) at the price of VND76,920 each in a move by the two to enter the local realty and construction sectors
The purchase agreement made the two foreign investors key shareholders of the local firm, with each holding a 5% stake. The investments by the two foreign companies are seen a landmark as this is the first time they invest in Vietnam.
Under the agreement, HBC will give the two partners the priority in participating in projects and business ventures developed or performed by HBC as well as to acquire in proportion the interest gained from HBC's issuing shares.
Chip Eng Seng and Citadel will also be represented in HBC's board of management, according to the agreement.
For Chip Eng Seng, this investment marks the first time the company is involved in overseas real estate sector, which fits the company's growth strategy, said a top executive of the Singapore firm.
"The Singapore market is very buoyant, where we will keep strengthening our position. At the same time, we also need to look beyond the local market for development," said Lim Tiam Seng, executive chairman of Chip Eng Seng.
"We begin our overseas foray with Vietnam because it is one of the fastest growing economies in Southeast Asia," he added.
Le Viet Hai, chairman and CEO of HBC, affirmed both of the foreign partners were to become HBC's strategic partners with long-term investment.
"There are similarities between HBC and Chip Eng Seng in several areas from products, services, strategies, objectives and policies of business transparency, which will certainly be beneficial for both of us," Hai said.
Meanwhile, Citadel Investment Fund is a big institution. With its financial capacity and extensive experience, Citadel can support effectively projects invested by HBC as well as those jointly invested by HBC and Chip Eng Seng.
Besides financial support, Citadel will also provide consultation regarding financial management and assessment, selection, and development of investment projects," Hai added.
HBC, Chip Eng Seng and Citadel will jointly develop many residential and commercial properties in the local.
Bourse-listed HBC this year expects to obtain VND450bil in turnover, increasing 119% against the previous year, and after-tax profits of VND27.5bil, up 205%.
HBC has the capability to provide a full package of construction services including architectural and interior design consultations.
(Source: SGT)

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