Petrovietnam Power Corporation (PV Power), Vietnam's second-largest electricity producer, is becoming an investment target of Teakwang Korea, with a deal value of up to VND12 trillion (US$528 million).
Taekwang Power Holdings, a member of Taekwang Group, is considering purchasing a 29 per cent stake in PV Power, according to the Korean daily Yonhap News.
The Korean corporation has completed the assessment of PV Power’s potential as well as paid field visits to PV Power's plants.
According to PV Power, leaders of the two corporations had a meeting on last Tuesday to further discuss the deal.
PV Power is a member of the Vietnam National Oil and Gas Group with a charter capital of VND23,418 billion (US$1.03 billion). Named on the list of companies to be equitized, early in January, PV Power auctioned its 20 per cent stake via IPO (initial public offering), obtaining an estimated amount of US$308 million.
PV Power is currently operating Vung Anh coal-fired thermal power plant, Ca Mau 1 & 2 gas power plants, Nhon Trach 1 & 2 and 3 hydropower plants, Hua Nua hydropower plant. Total capacity of these plants reaches 4,208 MW, accounting for 12 per cent of total electricity generation capacity in the country.
After the successful IPO, PV Power is still seeking strategic partners to sell additional 28.9 per cent of its stake. Taekwang Power Holdings is one of the most potential investors.
Teakwang has invested in Vietnam for over 20 years and is now one of the largest footwear manufacturers in Vietnam. Tens of thousands of Vietnamese workers are working in OEM (Original Equipment Manufacturer) factories in the OEM model in Dong Nai and Tay Ninh provinces. The third factory of the corporation was kicked off in September 2016 in Can Tho province.
In the field of energy, Teakwang is the investor of the Nam Dinh BOT coal-fired thermal power plant with a capacity of 1,200 MW. The US$2.2 billion project is in the process of finalizing the financing arrangements.
Last year, Teakwang was involved in the fertilizer sector with the groundbreaking of the NPK plant per year with capacity of 360,000 tons per year in Hiep Phuoc Industrial Park, Ho Chi Minh City.
With total assets over US$3.3 billion in 2016, Taekwang is increasing its investment in many fields including real estate, finance, energy, etc. in the South East Asia.
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