Dutch Damen Group bids to acquire Song Cam Shipbuilding

The SBIC said it is currently in consultation with the Prime Minister and leaders of the Ministry of Transport evaluating whether the Damen Group fulfills all the criteria to purchase.

Not all of the details of the deal have been disclosed by the SBIC.  However, it is known that if the bid is accepted Damen Shipyard Group will be required to implement a substantial investment programme to develop the capabilities of the shipyard over the coming years.

SBIC leaders say the proposal is of monumental significance in attracting investment capital to restructure the company, enhancing business administration capacity, renovating technologies and training highly skilled workers to seize opportunities to approach the world’s shipbuilding market.

Under a Prime Minister decision No 55 dated 2009, the cap of the participation of foreign investors in the Vietnamese stock market is limited to 49% and it remains to be seen whether an exception will be carved out to allow Damen Shipyard Group to acquire a 70.00% interest.

If the PM approves SBIC’s proposal, both sides are expected to conclude final negotiations on the value of shares by mid-January 2015, say SBIC leaders.

Damen – one of the largest shipbuilding groups from the Netherlands – has cooperated with the SBIC for the past ten years and is now an important partner of several SBIC’s subsidiary companies. Especially, a joint venture shipbuilding factory namely Damen Song Cam Shipyard has recently been inaugurated earlier this year with a 70% capital investment from the Dutch investor.

Damen Shipyard Group also plans to purchase shares from another subsidiary, Ha Long Shipbuilding Co, Ltd when the company releases its initial public offering (IPO) sometime in 2015.

At present, Damen is conducting an evaluation on the Song Cam Shipbuilding JSC and negotiations will be conducted after the Prime Minister issues a decision on the maximum stake, which will be sold to the group.