Posted on 17 Jul 2023
Vietnam’s Pomina Steel’s plans for a strategic partnership with Japan’s Nansei were formally approved at a shareholders’ meeting on Friday. Nansei will become a shareholder with 20% ownership in the Vietnamese steel producer through an investment of nearly VND 702 billion ($29.6 million), Kallanish notes.
The Japanese company will purchase more than 70.1m of additional shares at VND 10,000/share. The private placement will be divided into two tranches to increase equity, supplement working capital, and prepare finance to deploy the blast furnace restart plan in 2024. In the first phase, the company will offer more than 10.6 million shares in August 2023. The second phase will involve the issuing of nearly 59.6m shares in September 2024.
Pomina plans to use the proceeds to supplement its production and business activities, which includes the restart of its 1 million tonnes/year blast furnace at Pomina 3. The company stopped operating the blast furnace plant last September to minimise losses amid weak domestic steel demand and a depressed real estate market. Pomina has overall capacity of 1.5m t/y melting and 1.1m t/y rolling of construction long products.
Nansei is a supplier and exporter of ferrous scrap based in Chiba Prefecture, Japan. While its 100% subsidiary, Nansei Vietnam, was recently established, the parent company has already been working with Pomina for nine years.
Source:Kallanish
