Thoresen Thai Agencies invests more than Baht 374 million in Baconco, a fertiliser trader & manufacturer in Vietnam
(date) - Thoresen Thai Agencies Plc. (“TTA”) continues to pursue its business diversification strategy by acquiring 100% of EMC Gestion S.A.S (“EMCG”) for approximately Baht 374 million. EMCG is the sole shareholder of Baconco Co., Ltd., which is a manufacturer and trader of fertilisers and supplier of new seeds and materials for Vietnam’s agricultural market.
M.L. Chandchutha Chandratat, Managing Director of Thoresen Thai Agencies Plc. (“TTA”) disclosed that “Soleado Holdings Pte. Ltd. (“Soleado”), a wholly owned subsidiary of TTA, has purchased 100% of EMCG, which is the 100% shareholder of Baconco, a manufacturer and trader of fertiliser in Vietnam from EMC S.A., the sole shareholder of EMCG. The total purchase price for EMCG is approximately Baht 374,409,750. This acquisition is supported by the fact that Vietnam continues to achieve positive economic growth and is a major agricultural production country. Agricultural productivity is one of the main drivers of fertiliser demand”
“The main objective of this acquisition is to pursue a more integrated supply chain strategy to grow our business, whereby we not only ship fertiliser but now also trade fertiliser. The investment in Baconco represents a good opportunity for TTA to develop fertiliser export and import activities, which would support the dry bulk shipping utilisation. TTA has shipped more than 2 million tons of fertiliser on our vessels in 2008 and so far has shipped more than 1.5 million tons during the first nine months of 2009. Baconco is located next to Baria Serece Port, which allows Baconco to receive raw materials at the best price and to ship finished products easily by river or sea.” M.L.Chandchutha added.
“Furthermore, the spacious plant site as well as the extensive warehouse space of 56,000 square meters allow for potential professional logistics services in the future, given that there are no professional and warehouse service providers in Phu My I Industrial Park, whereby Baconco and Baria Serece are both located. Currently about 5 million tons of cargoes are shipped through Baria Serece Port annually, with further increase expected as Vietnam continues to grow.” M.L Chandchutha finally commented.
Baconco was established in 1995 in Vietnam and has a share capital of approximately USD 25,833,128.40. EMCG, a French incorporated company, is the sole shareholder of Baconco. The principal activities of Baconco are manufacturing, trading synthesized chemical fertilisers along with mineral fertilisers (phosphate and potash), and supplying new seeds and materials for Vietnam’s agriculture market. The factory is located in Phu My I Industrial Park, Baria Vung Tau Province. Baconco enjoys the exclusivity of the patent on USP (Super Phosphate Urea) for Vietnam, Cambodia, and Laos. Baconco is the only company in Vietnam with the expertise and equipment to produce the high-margin USP-based fertilisers. Baconco has an extensive distribution network with about 200 independent wholesalers and 8,000 sales outlets that cover the entire country. Baconco is a well-known brand in Vietnam associated with high quality products.
TTA is a leader in the dry bulk shipping industry, providing liner and charter services, and is a major player in Southeast Asian offshore services through Mermaid. TTA is amongst the top 50 companies listed on the Stock Exchange of Thailand with high liquidity.