Tech group CMC partners with Samsung's IT arm to strengthen business

Friday, Jul 12, 2019 08:33

A CMC data centre. The Vietnamese technology group has decided to sell 25 million shares to Samsung SDS, the IT arm of global phonemaker Samsung, to raise VND750 billion (US$32.25 million) and strengthen its business operation. — Photo courtesy of CMC

Technology group CMC will sell 25 million shares to an arm of Samsung SDS, a subsidiary of the South Korean tech giant Samsung Group.

CMC hopes the shares will be sold for least VND30,000 (US$1.29) per share, the company would raise VND750 billion ($32.25 million) from the deal.

Sixty per cent of the capital raised, or VND450 billion, will be invested in CMC’s member companies.

The remaining capital will be spent improving the firm’s infrastructure and facilities.

The buyer could be either Samsung SDS Co Ltd or Samsung SDS Asia Pacific Pte Ltd. Both are members of Samsung SDS, which is the IT and logistics arm of Samsung Group.

Samsung SDS will own a 25 per cent stake in CMC’s capital after the deal.

CMC is listed on the Ho Chi Minh Stock Exchange with the code CMG.

The company shares inched up 0.5 per cent yesterday to close at VND37,400 per share.

CMC's shares have gained 77 per cent in the last eight months, bringing the group’s market value to VND2.68 trillion as of the end of trading yesterday.

CMC and Samsung SDS started co-operating in 2016. In June 2018, the two sides agreed CMC would develop a management and operation system for more than 200 Samsung factories in Viet Nam.

In late May 2019, Samsung SDS and CMC signed agreements on the provision smart factory, cloud, cyber security and blockchain solutions.

The agreement demonstrated the quality of Vietnamese technology businesses as the country strives to take full advantage of Industry 4.0.

The deal is part of CMC’s effort to achieve $1 billion in revenue by 2023.

According to Samsung SDS chairman and CEO Won Pyo Hong, CMC may help the South Korean firm expand its business in Viet Nam and Southeast Asia.

“The co-operation between CMC and Samsung SDS will offer a great value in the development of the digital economy for Viet Nam and help the country reach out to the Asia-Pacific and global markets,” CMC chairman Nguyen Trung Chinh said.

In early April, CMC launched the first open ecosystem for enterprises in Viet Nam to help hasten the digital transformation among local companies and government agencies, which has been a priority for the Government.

In March, CMC raised VND300 billion from issuing corporate bonds to the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV). — VNS

Comments (0)