Thailand's Stark Corporation has completed the acquisition of Vietnam-based Thinh Phat Cables (Thipha) and Dong Viet Non-Ferrous & Plastic (Dovina) for a combined value of US$240 million.

A Thinh Phat Cables (Thipha) worker conducts a check at the company's factory.
Established in 1987 in HCM City, Thipha is the second largest manufacturer
of electrical wires and cables in Vietnam (Photo thiphacable.com)

The transaction was implemented by Stark Corporation’s subsidiary Phelps Dodge International (Thailand) Co Ltd, a leading Thai and Southeast Asian wire and cable manufacturer.

Through the deal, Stark aims to increase productivity and cable production capacity, as well as expand to become a leading producer of power cables in the region.

“The overall business of the company and the target companies is similar and complement the company’s core business and also enhance the competitive advantages of the group company for domestic and international markets,” newswire dealstreestasia quoted Stark Corporation as saying in a stock exchange filing.

Phelps Dodge International produces and exports wires and cables to various countries, while the Vietnamese businesses operate in the same sector and have also reached several Southeast Asian markets.

The transaction represents the largest inbound private sector industrial transaction in Vietnam in the last three years, according to Mergermarket. It reflected the continued attractiveness of the Vietnamese domestic market, and Vietnam’s strong regional position within ASEAN.

According to news site nhadautu.vn, ThiPha was established in 1987 in HCM City and is the second largest manufacturer of electrical wires and cables in Vietnam.

At the end of 2009, ThiPha’s shareholders established Dovina to import and process copper and aluminum for the production of electrical wires and cables. Dovina sells processed copper and aluminum to ThiPha and other businesses in Vietnam and abroad.

Both are among the 100 largest private companies in Vietnam.

By the end of September 2019, the total assets of Thipha and Dovina had reached VND4.7 trillion (US$201 million). Total combined revenue and net profit also reached VND7.1 trillion and VND344.8 billion, respectively.

ThiPha's projects include Park Hill Building in Hanoi, E-Home 3, 4, 5 in HCM City and Binh Duong province, Tan Son Nhat International Airport in HCM City, Diamond Bay Resort 2 in Khanh Hoa province, and Phu Quoc Airport in Kien Giang province.

ThiPha also provides products to projects in foreign markets such as the Vatanac Tower in Cambodia, Hong Kong Land in Cambodia and the Coca Cola factory in Myanmar.