Bamboo Capital to partner with strategic investor to boost infrastructure segment

By Huong Dung
Tue, June 6, 2023 | 10:40 am GMT+7

Bamboo Capital Group will transfer 21 million shares of its construction subsidiary Tracodi to a strategic partner experienced in infrastructure development in an effort to increase the firm’s competitiveness and seize opportunities from large-scale public investment projects.

Bamboo Capital Group, listed on the Ho Chi Minh Stock Exchange (HoSE) as BCG, on Monday approved the sale of 21,040,000 out of its total 145,130,507 TCD shares in Tracodi. The deal is expected to be made from June 5 to July 5 in the form of put-through transactions at market prices at the time of transaction.

Tracodi is constructing a taxiway at Phan Thiet Airport in Binh Thuan province, south-central Vietnam. Photo courtesy of Bamboo Capital Group.

Tracodi is constructing a taxiway at Phan Thiet Airport in Binh Thuan province, south-central Vietnam. Photo courtesy of Bamboo Capital Group.

Bamboo Capital also approved the appointment of key leaders as its representatives for the remaining stake in Tracodi. Nguyen Thanh Hung will manage more than 49.6 million shares, or 17.66% of Tracodi's charter capital; Nguyen The Tai more than 37.2 million shares, or 13.24%; and Pham Dang Khoa more than 37.2 million shares, or 13.24%.

Bamboo Capital now holds 51.63% of Tracodi’s charter capital. After divesting the 21 million shares, equivalent to 7.49%, the group’s ownership rate will drop to 44.14%, but Tracodi will remain a member of the Bamboo Capital ecosystem.

Despite this 44.14% ratio, Bamboo Capital and its senior leaders will still hold dominating stakes in Tracodi, so the divestment will not affect voting on major policies, thus maintaining the long-term strategy and vision set for Tracodi.

The buyer has not been disclosed yet, but at the 2023 BCG annual general meeting, Bamboo Capital revealed that it is planning to develop Tracodi under the model of an infrastructure-construction corporation, and will increase its competitiveness by inviting a strategic partner to join the company.

A representative from BCG said that the buyer will become a strategic partner who will help to develop Tracodi and seize opportunities in the infrastructure segment.

Tracodi was established in 1990. After a successful M&A and restructuring plan by Bamboo Capital in 2015, Tracodi became an important member company of the group, in charge of the construction and infrastructure segment.

In 2017, Tracodi was listed on the HoSE as TCD. With current charter capital of more than VND2.44 trillion ($104 million), it is the main contractor for many real estate and renewable energy projects run by Bamboo Capital.

A toll collection station in provincial road 830 connecting Long An province with HCMC, built by Tracodi. Photo courtesy of Bamboo Capital Group.

A toll collection station in provincial road 830 connecting Long An province with HCMC, built by Tracodi. Photo courtesy of Bamboo Capital Group.

In addition, Tracodi also undertakes important infrastructure projects, including a taxiway for Phan Thiet Airport in the south-central province of Binh Thuan; a residential area and a reservoir adjacent to the Duc Thang residential area in Hiep Hoa district, the northern province of Bac Giang; and National Highway 3-Vo Nguyen Giap-Dong Anh road in Hanoi.

From 2024-2027, the company will build the Go Dau-Xa Mat Expressway in Tay Ninh, Duc Hoa-Duc Hue Road in Long An, and provincial road 935 in Soc Trang.

This year, Tracodi has set a target of raking in VND3.3 trillion ($141 million) in consolidated net revenue, a year-on-year increase of 13%, and over VND267 billion ($13.39 million) in consolidated after-tax profit, down 20%.

In Q1/2023, the company recorded revenue of more than VND314 billion ($13.36 million), and after-tax profit of VND68 billion ($2.89 million), equivalent to 10% and 25% of the year's targets, respectively.

BCG closed the Monday session at VND9,780 ($0.42), while TCD hit VND8,520 ($0.36).

Comments (0)
  • Read More
Taiwan’s Foxconn acquires Vietnam unit of China’s Goertek

Taiwan’s Foxconn acquires Vietnam unit of China’s Goertek

Taiwan’s Foxconn Interconnect Technology (FIT) has acquired Goertek Electronics Vietnam under Chinese electronics giant Goertek, subject to approval of relevant regulatory authorities.

Companies - Sat, February 22, 2025 | 3:55 pm GMT+7

Vietnam slaps 27.83% anti-dumping duty on China’s hot rolled steel coils

Vietnam slaps 27.83% anti-dumping duty on China’s hot rolled steel coils

Vietnam’s Ministry of Industry and Trade has imposed a temporary anti-dumping duty of 27.83% against hot rolled steel coils (HRC) imported from China.

Industries - Sat, February 22, 2025 | 3:47 pm GMT+7

Vietnam to complete 500 kV power line in Aug to facilitate electricity import from China

Vietnam to complete 500 kV power line in Aug to facilitate electricity import from China

State utility Vietnam Electricity (EVN) must kick off the construction of the 500 kV Lao Cai-Vinh Yen power line in the northwestern region in February and complete it by August 31.

Energy - Sat, February 22, 2025 | 12:13 pm GMT+7

Vietnamese retailers accelerate digital transformation

Vietnamese retailers accelerate digital transformation

Vietnam's retail sector is rapidly advancing in terms of digital transformation, with retailers embracing data-driven strategies and diversified sales channels to cut costs and streamline operations.

Southeast Asia - Sat, February 22, 2025 | 10:07 am GMT+7

Vietnam now 9th largest trading partner of Singapore

Vietnam now 9th largest trading partner of Singapore

Vietnam has become Singapore's 9th largest trading partner, with two-way trade rising by 16.83% year-on-year to SGD3.39 billion ($2.53 billion) in January, according to latest statistics.

Southeast Asia - Sat, February 22, 2025 | 10:00 am GMT+7

Russia's Rosatom eyes to boost new technology cooperation with Vietnam

Russia's Rosatom eyes to boost new technology cooperation with Vietnam

Russia's Rosatom State Atomic Energy Corporation has reaffirmed its commitment to strengthening ties with Vietnam, especially in quantum technology.

Southeast Asia - Sat, February 22, 2025 | 9:53 am GMT+7

Over $13.7 bln needed to upgrade Vietnam's port system

Over $13.7 bln needed to upgrade Vietnam's port system

Vietnam will need an estimated VND351.5 trillion ($13.76 billion) to upgrade its port system by 2030, according to a detailed plan for seaports, terminals, quays, mooring buoys, and water zones for the 2021-2030 period, with a vision to 2050.

Southeast Asia - Sat, February 22, 2025 | 9:49 am GMT+7

M&A in 2025: Big deals, winning hands, and wild cards

M&A in 2025: Big deals, winning hands, and wild cards

In Vietnam, domestic companies are leading high-value transactions, and foreign investors are showing renewed interest, particularly in the healthcare and education sectors, write PwC Vietnam analysts.

Consulting - Sat, February 22, 2025 | 8:17 am GMT+7

Indonesia expands carbon trade with nature-based solutions

Indonesia expands carbon trade with nature-based solutions

Indonesia is promoting the supply of carbon credits from nature-based solutions, such as emissions stored in peat ecosystems, according to Deputy Minister of Environment Diaz Hendropriyono.

Southeast Asia - Fri, February 21, 2025 | 10:45 pm GMT+7

Indonesia to develop new DeepSeek

Indonesia to develop new DeepSeek

Indonesia is pushing ahead with the development of a low-cost, open-source large language model (LLM), seen as a local version of China's DeepSeek chatbot, in its bid to become a tech powerhouse in Southeast Asia.

Southeast Asia - Fri, February 21, 2025 | 10:42 pm GMT+7

Former Central Retail Vietnam CEO joins Masan Group

Former Central Retail Vietnam CEO joins Masan Group

Vietnam’s leading retailer Masan Group (MSN) has appointed Philippe Jean Broianigo as deputy CEO of The CrownX, the entity managing its consumer and retail segments.

Companies - Fri, February 21, 2025 | 10:37 pm GMT+7

Monetary, exchange rate policies under mounting pressure: Vietnam central bank

Monetary, exchange rate policies under mounting pressure: Vietnam central bank

The State Bank of Vietnam’s (SBV) monetary and exchange rate policies will face significant pressure in 2025, as both the global and domestic economic environments remain unpredictable, said Governor Nguyen Thi Hong.

Banking - Fri, February 21, 2025 | 10:25 pm GMT+7

India conglomerate Larsen & Toubro seeks to develop urban railways in Hanoi

India conglomerate Larsen & Toubro seeks to develop urban railways in Hanoi

India-based conglomerate Larsen & Toubro (L&T), among the biggest builders and infrastructure developers in the world, seeks to join urban railway projects in Hanoi.

Infrastructure - Fri, February 21, 2025 | 5:37 pm GMT+7

Moody’s Ratings forecasts Vietnam's 2025 GDP growth at 6.5-7%

Moody’s Ratings forecasts Vietnam's 2025 GDP growth at 6.5-7%

Moody's Ratings has forecast Vietnam can reach a real GDP growth of 6.5-7% in 2025, the highest tally in the region.

Economy - Fri, February 21, 2025 | 5:29 pm GMT+7

$15.5 bln Just Energy Transition Partnership picks 8 projects in Vietnam, not yet disburse

$15.5 bln Just Energy Transition Partnership picks 8 projects in Vietnam, not yet disburse

The Just Energy Transition Partnership (JETP), which was launched in December 2022 to mobilize $15.5 billion to finance Vietnam’s green transition, selected eight projects in the country in 2024.

Economy - Fri, February 21, 2025 | 3:29 pm GMT+7

Vietnam to ease procedures for foreigners' work permits, judicial records

Vietnam to ease procedures for foreigners' work permits, judicial records

Vietnam’s Ministry of Labor, Invalids and Social Affairs (MoLISA) is drafting a decision to ease procedures related to foreigners' work permits and judicial records.

Economy - Fri, February 21, 2025 | 12:12 pm GMT+7