Ho Chi Minh City, 24 July 2021

On 23 July, SCG Packaging Public Company Limited (SCGP) completed the acquisition of 70% equity stake in Duy Tan Plastics Manufacturing Corporation (Duy Tan).  VILAF acted as counsel of SCGP in the transaction.

The purchase price includes the initial payment of VND3,630 billion (approximately US$157.8 million) and a second payment to be based on Duy Tan’s incremental financial performance for 2020 and 2021, for a total purchase price to be capped at VND6,400 billion (approximately US$278.3 million).

Duy Tan is Vietnam’s leading producer of rigid plastic packaging products, generating over US$200m revenues in 2020, with five subsidiaries.  

SCGP is a subsidiary of Siam Cement Group (SCG), one of the leading conglomerates in Thailand.

The transaction has a complex arrangement involving an option to acquire the remaining stake and a subsidiary in another jurisdiction, an earn-out package, and a partnership arrangement.

The VILAF team advising SCGP in the transaction include Partners Duyen Ha Vo and Ngoc Luong Trinh, Counsel Tung Nguyen, Senior Associate Dan Thanh Tran, and Associates Thuan Mai, Lien Nguyen, Truc Ta and Tri Tran.

Partner Duyen Ha Vo said, “Congratulations to SCG for having reached this remarkable milestone.  It was a memorable and rewarding journey working with SCG, Duy Tan and other parties in this complex transaction and closing it during the strictest lockdown time ever in Ho Chi Minh City.  Big thanks and congratulations to all the deal teams and other advisors for making this happen!”