Indorama Ventures Public Company Limited (IVL) has kicked off the new year with the announcement of a new acquisition. In line with its business strategy of aimed at growing its presence in rising economies like Vietnam, the Thailand-based PET giant is currently in the process of acquiring shares in Ngoc Nghia Industry (NN), a PET converter with four manufacturing sites in both North and South Vietnam. The transaction is expected to be completed by the first half of 2022.
With a total production capacity of approximately 5.5 billion units of PET preforms, bottles and closures, equivalent to a PET conversion of 76,000 tons per annum, NN is a trusted provider of PET packaging products to major multinational and Vietnamese brands in the beverage and non-beverage industries. The company is run by an experienced management team with strong industry knowledge. The proposed acquisition is a strategic fit for IVL, offering long-term growth after integration that will serve to strengthen IVL’s market position in the packaging business in the high growth markets in the Asia-Pacific region.
According to D K Agarwal, CEO of Combined PET, IOD and Fibers Business at Indorama Ventures, Vietnam is positioned to be the ASEAN production hub for the Asia-Pacific region. “Moreover, Vietnam’s PET packaging market is expected to grow continuously due to strong growth in consumption and improving living standards. The proposed acquisition would foster sustainable growth in our largest business segment, Combined PET, which has been growing constantly to serve increasing demands globally,” he said.
The acquisition process is subject to the Law on Securities, its guiding decrees and circulars as required by the State Securities Commission of Vietnam and regulations of the Hanoi Stock Exchange. Through its affiliate, Indorama Netherlands B.V., IVL would be required to do the tender offer of all of NN’s shares. The transaction is expected to be completed by the first half of 2022.