Thai Plastic and Chemicals plc (TPC), The largest PVC product producer in Southeast Asia, through its wholly owned subsidiary Nawaplastic Industry Saraburi Co (NPI), has successfully acquired a 22.67% stake in the largest manufacturer and distributor of plastic piping in South Vietnam, Tienphong Plastic JSC (NTP), for US$20 million.
TPC operates as a manufacturer and distributor of PVC (polyvinyl chloride) products. The company produces and sells PVC resin, which is a raw material used for further production processes. It has two domestic factories and overseas operations in Vietnam and Indonesia.
Following this transaction, NPI becomes the second largest shareholder of NTP after State Capital Investment Corporation (SCIC). The acquisition is in line with the company's strategy of expanding into the downstream segment to cope with the volatility of PVC prices.
NTP produces and sells plastic pipes and fittings in Vietnam, mainly in North Vietnam. The company has the ability to offer high quality industrial products via a wide distribution network with 250 stores in the north and 15 in the South of the country.
Oaklins' team in Thailand was appointed as the exclusive financial advisor to the buyer.
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