Samsung SDS to acquire 25 million CMC Corporation stakes

In its file sent to the Ho Chi Minh City Stock Exchange dated May 24, CMC Corporation has announced its plan to issue 25 million ordinary shares to Samsung Group’s ICT arm Samsung SDS in the coming time. 

At the price of VND37,500 ($1.63) a share closed on May 28, the value of the share issuance will amount to VND937.5 billion ($40.76 million).

Should the private placement plan be backed by CMC’s shareholders at the annual shareholder meeting to be held on June 26, the local technology firm’s total shares will add up to over 100 million pieces.

PYN Elite Fund currently has 6.1 per cent holdings at CMC Corporation, being the largest foreign shareholder of the company.

According to the company’s consolidate financial statement, pre-tax profit for the first three months of the year was reported at VND57.33 billion ($2.49 million), an up of 47.6 per cent on-year.

On May 25, CMC has signed a strategic partnership agreement with Samsung SDS for a comprehensive cooperation in a wide range of high-tech areas including smart factory, cloud, cyber security, blockchain and big data.

The agreement is believed to help foster Samsung SDS’s expansion in Vietnam while promoting CMC Corporation closer to achieving its $1-billion takings goal by 2023.