Thai Duong Rubber’s Private placement to a Vietnamese strategic industry player
Thai Duong Rubber is a leading Vietnamese company specializing in producing joint & gaskets for water pipes, Dog toys, Silicon rubber products… with 80% products for export. In 2007, Tri Viet acted as sole advisor for Thai Duong in company restructuring, corporate governance and private placement to a strategic industry player to finance for a VND40bn project. In October 2007, Thai Duong entered a share and purchase agreement with a strategic industry partner to sell 30% of company’s holding. The industry partner is Dak Lak Rubber Company (Dakruco), one of the largest rubber companies in Vietnam, and also the leading enterprise in Dak Lak province, with 22,409 hectares of rubber plantations under management and a labour force of 6,625 staff. As the strategic partner, Dakruco is committed to provide favourable support for Thai Duong with supplies of rubber materials, as well as working on joint projects to develop new rubber products.
Preparation and offering
- Advise on capital structure, analyze company’s capital need and cost of capital;
- Advise on restructuring accounting system to meet requirements of investors;
- Analyze and defend company valuation;
- Prepare Investment Memorandum and marketing package;
- Find the potential investors and promote investment opportunity.
Negotiation and deal closing
- Assist with negotiation on transaction value and terms of the transaction;
- Prepare Share Transfer Agreement and other investment documents.
Tri Viet has established a long-standing relationship with Thai Duong and still acts as member of the Supervisory Board of the Company.