VietNamNet Bridge – A local firm – the Investment and Development JSC (Sacom) – has revealed its ambitious desire to take over of the Vietnam Automobile Industry Corporation (Vinamotor).

According to Dau Tu newspaper, Sacom’s CEO Do Van Trac has submitted the written proposal to the Ministry of Transport to purchase the entire shares of Vinamotor.

Specifically, Sacom proposed acquisition of 100% of state capital in Vinamotor, with a total of 85,581,223 shares, equivalent to 97.7% of the charter capital, at the price of VND10,000/share.

If Sacom’s proposal is approved by the Ministry of Transport, Sacom will have to pay at least VND855.81 billion ($40.7 million) to own Vinamotor, which has been operating as a joint stock company since last June.

Sacom’s proposal was a big surprise because there is no connection between the business of Sacom and Vinamotor.

Sacom is an enterprise specializing in producing wire copper cable, fiber optic cable, and electromagnetic wires, while the three major business areas of Vinamotor are auto assembling, mechanical engineering and transportation services.

It should be noted that Sacom’s proposal came forward nearly one month after the government gave the"green light" for the Ministry of Transport to disinvest from Vinamotor.

"We are confident in the acquisition of the entire state capital in Vinamotor, and determined to turn Vinamotor into a lucrative business," Trac said.

By the end of September 2014, Sacom’s scale was just a little bigger than Vinamotor (with total assets of VND3.079 trillion and VND1.308 trillion of charter capital) but its business performance was very good (net turnover of VND1.141 trillion and profit of VND104.4 billion).

For Vinamotor, during its 40 years of operation, except for the period from 1999 to 2001, the corporation did not perform well.

Its major products are passenger cars and trucks with the brands Transinco and Vinamotor. Vinamotor also remains active in the field of mechanics, automotive repair, construction machines, and spare parts production.

It is said that Vinamotor’s attractiveness comes from its subsidiaries, which own vast land in Hanoi, such as Ngo Gia Tu Engineering Company, 3/2 Auto Mechanical Joint Stock Company, and 1/5 Auto JSC.

Na Son