|Trucks transport sugarcanes to factories at the southern Tay Ninh Province. Mergers were a trend among strong sugar firms because it can help them find materials and products from other areas. — VNA/VNS Photo Phuong Vy
HANOI (VNS) — Thanh Thanh Cong Tay Ninh Co (SBT), the sugar arm of the Thanh Thanh Cong Group, plans to merge with Gia Lai Sugar-Thermal Power Co (SEC).
This was revealed by Dang Van Thanh, chairman of the group at a conference on sugar-cane and agriculture in Viet Nam last Thursday.
The group is seeking a consultancy company to help make the deal, Thanh said.
This is the second merger and acquisation among sugar companies. Earlier this month, Ninh Hoa Sugar Co (NHS) and Bien Hoa Sugar Co (BHS) announced a similar plan.
Thanh said mergers were a trend among strong sugar firms because it can help them find materials and products from other areas.
Thanh Thanh Cong Group has five main businesses, sugar, real estate, tourism, energy and financial investment. The group, which has 20 subsidiaries and affiliates, has total charter capital of VND8.26 trillion (US$391.5 million). Its total assets are VND23 trillion ($1.1 billion).
This year, the group projects pre-tax profit of more than VND800 billion ($37.9 million).
The group's growing area this year is 50,000 hectares which produces an average sugar-cane yield of 65 tonnes per hectare.
Apart from sugar, there are byproducts such as electricity and food alcohol.
In 2013-14, total sugar output of the group was 295,000 tonnes. — VNS