DNP earns nearly 700 billion VND from M&A of two water plants

DNP Water – a member unit of DNP, has just divested from its investments in Tan Hiep 2 water plant and BOO Thu Duc through its subsidiary Saigon Water.

Based on the Board of Directors' resolution issued, the company has signed contracts with the buyers and will complete the transaction in December. It is expected that the company will collect more than VND900 billion in cash and the profit from the investment will be nearly VND700 billion.

This is a specific activity in DNP Water's general strategy of focusing only on member units with controlling rights and divesting from associated investments that have had good results.

Resources after divestment will be prioritized to participate in the construction of larger projects that the company is pursuing, such as the Song Tien 1 project with a capacity of 600,000 m3 in two phases - building raw water supply infrastructure for the three provinces of Tien Giang , Ben Tre and Long An. The project is included in the planning approved by the Government to locally adjust the water supply planning for the Mekong Delta region to 2030, with a vision to 2050 from March 2021. After that, Tien Giang province approved the investment policy for DNP Water, the company is expected to start construction in early 2025.

DNP Water is currently one of the leading private companies investing in water supply and drainage infrastructure in Vietnam with many water plants in 13 provinces and cities. In addition to DNP, DNP Water has Samsung E&A as a strategic shareholder holding 24%. Every year, DNP Water is still building 1 or 2 new projects in provinces with economic potential or facing challenges in sustainable water supply infrastructure.

Specifically, in September 2024, the company inaugurated phase 1 of the Son Thanh - Khanh Hoa water plant with an infrastructure planning of 100,000 m3/day and night, and in November 2022, inaugurated the BOO Sapa plant with 15,000 m3/day and night.

The company is specifying the goal that in the next 5 years it can participate in building 2 regional factories for the Western region with a total capacity of 1,200,000 m3 of water/day and night (one Regional 1 factory for 3 provinces of Tien Giang, Ben Tre, Long An and 1 water supply infrastructure factory for the Ca Mau peninsula including the provinces of Ca Mau, Bac Lieu, Soc Trang) to fundamentally solve the current situation of excessive use of groundwater resources causing subsidence and salinity intrusion, drought in water supply areas, contributing to building water supply infrastructure for sustainable development.

Source: https://baodautu.vn/dnp-thu-loi-gan-700-ty-dong-tu-ma-hai-nha-may-nuoc-d230378.html