Japanese Kyoei Steel Company has announced its registration to purchase 33.2 million additional shares or 45 per cent stake of Viet Nam-Italy Steel JSC (VIS).

The registration was made after VIS received the approval to increase foreign ownership limit to 100 per cent.

The registered stake is equal to the stake that Thai Hung Trading JSC, which owns a 65 per cent stake in VIS, will divest.

Currently, Kyoei owns 14.8 million shares of VIS, equivalent to 20 per cent stake of the company. If the transaction is successful, Kyoei will hold 65 per cent stake and become the parent company of VIS.

The deal is scheduled to take place on the stock exchange from May 10 to June 6. VIS’ share is valued at VND34,400 (US$1.51) per share, thus Kyoei may spend at least VND1.14 trillion on the deal.

VIS was established in 2001 by Song Da Corporation. The corporation later decided to divest all of its 26.1 million shares from VIS.

The company specialises in producing and trading construction steel, import and export material, spare parts and equipment for the steel industry as well as logistics services.

This year, VIS targets a production capacity of 500,000 tonnes of steel, up by nine per cent compared to the previous year. The firm also targets over VND7.09 trillion in revenue and VND90.4 billion in pre-tax profit, signifying year-on-year increases of 16 per cent and 64 per cent, respectively. — VNS