Coteccons decided to divest from Ricons because it felt 'unwelcome'

Owning 14.43% of capital but having no say in the board of directors, even feeling 'unwelcome' and having to compete directly, Coteccons wants to completely divest from Ricons.

No longer having similarities in values, lack of synergy and frequent confrontations in bidding packages are the main reasons given by the chairman of Coteccons to explain his decision to completely divest from Ricons - Photo: CTD

At the dialogue with shareholders held on September 20, Mr. Bolat Duisenov - Chairman of the Board of Directors of Coteccons (HoSE: CTD) - did not hesitate to share about the increasingly distant relationship with Ricons Construction Investment Joint Stock Company.

According to Mr. Bolat, as of June 30, 2025, Coteccons owns 14.43% of capital at Ricons, but this "big guy" in the construction industry does not participate in the executive board or the supervisory board of Ricons, and even feels "unwelcome" at Ricons.

The head of Coteccons said that owning capital at Ricons is purely a financial investment and the intention to divest has been cherished for a long time.

"We have wanted this since before. We wanted it yesterday, we want it today and we want it tomorrow," Mr. Bolat said.

However, Mr. Bolat affirmed that Coteccons will not rush, divestment will only be carried out when "a reasonable and fair price is reached".

Explaining the decision to "break up", the chairman of Coteccons pointed out the profound differences between the two businesses, which are the lack of similarities in values ​​and culture, and the lack of synergy. Moreover, he said the two companies often compete directly in the construction market, turning the relationship from a partner to an opponent.

During the period when contractors competed for the 35,000 billion VND package to build Long Thanh airport, the "war" between Coteccons and Ricons attracted the attention of investors when Ricons requested to open bankruptcy proceedings against Coteccons regarding the debt between the two contractors right in the final stage.

Coteccons said that before 2019, Coteccons and Ricons were under the management and part of an ecosystem of 7 interconnected member companies, including Coteccons, Unicons, Ricons, Newtecons, BM Windows, Sol E&C, and Boho.

After businessman Nguyen Ba Duong left his leadership position at Coteccons at the 2020 congress, this ecosystem "disintegrated" and later disputes also arose between the "old people".

Coteccons prioritizes "cutting meat to keep muscle"

According to the 4th quarter financial report of fiscal year 2025, Coteccons' cumulative revenue for the 12 months reached nearly VND24,867 billion, up 18% over the same period. Profit after tax reached VND454 billion, up 47% over the previous year. Coteccons said the total value of backlog orders had reached VND45,000 - 50,000 billion by the end of the first quarter of the new fiscal year.

Mr. Vo Hoang Lam - Deputy General Director of Coteccons - said that the profit margin of the construction industry is increasingly narrowing due to fierce competition and fluctuations in material prices. After the restructuring period, Coteccons prioritizes "cutting meat to keep muscle", eliminating "excess fat" towards a business that operates flexibly and effectively.

Coteccons leaders said that apart from the Emerald 68 project in the old Binh Duong , this contractor will not venture into the real estate sector, to avoid taking on the risks of this industry. Instead, the company aims for mutually beneficial cooperation, with good profit margins and the lowest possible risks.

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Source: https://tuoitre.vn/coteccons-quyet-thoai-von-khoi-ricons-vi-thay-khong-duoc-chao-don-20250920175621016.htm