BANGKOK, NNA-- TCG Solutions Pte. Ltd., a subsidiary of Thailand's SCG Packaging Public Co. (SCGP), is poised to expand further in Asia after buying a huge majority stake in Vietnam’s consumer goods packaging supplier Bien Hoa Packaging Joint Stock Company (SOVI).
TCG Solutions paid 2.7 billion baht ($90 million) for a 94.11 percent stake or 12 million shares from Bien Hoa shareholders, according to SCGP’s filing to the Stock Exchange of Thailand on Friday.
TCG Solutions is a wholly owned subsidiary of Thai Containers Group Co., which is a joint venture of SCGP and Rengo Co. SCGP is a subsidiary of Siam Cement Group (SCG), one of the largest companies in Thailand.
Roongrote Rangsiyopash, CEO of SCG, had said in its filing to the Stock Exchange of Thailand earlier this year that the acquisition would increase its fiber-based packaging business in Vietnam, while strengthening its market position in the country as well as in ASEAN.
“SCGP believes that the transaction is crucially aligned with our strategic growth platform and will be a solid cornerstone for the development of SCGP’s integrated consumer packaging business in the long run," Roongrote added.
Wichan Jitpukdee, CEO of SCGP, said in the company's filing to the Stock Exchange of Thailand on Friday, “SOVI will help expand SCGP’s customer base in food and beverage segments as well as the fast-moving consumer goods market and the manufacturing of packaging paper products.”
Bien Hoa is known for producing corrugated box and offset laminate packaging. Its customers include global companies like Unilever, Nestle, Suntory and Schneider Electric.
SCGP also expanded its customer base following a full acquisition of foodservice packaging producer, Go-Pak UK Ltd, in early November. Go-Pak’s many clients in Europe include food service distributors, retailers and wholesalers.
SCGP currently operates 40 facilities throughout Southeast Asia, covering countries like Thailand, Vietnam, Indonesia, the Philippines and Malaysia.
SCGP made a revenue of 69 billion baht in the first nine months of this year, or a 5 percent increase year on year. The better performance was due to higher demand from consumer related segments, food and beverage products, according to the company’s financial statement.