A Vietnamese packaging company "in the hands" of Thai people wants to leave the stock exchange

Bien Hoa Packaging Joint Stock Company (Sovi, stock code: SVI) has just announced that it will convene an extraordinary shareholders' meeting on the morning of December 15. The main content is related to the company's request to cancel its public company status and simultaneously delist from the Ho Chi Minh City Stock Exchange (HoSE).

As of June 30, this company had a charter capital of over VND 128 billion and equity of VND 898 billion as of June 30, 2025. Currently, the largest shareholder is TCG Solutions Pte. Ltd., a unit of Thai Containers Group - a member company of SCG Group (Thailand), holding 94.11% of capital. The remaining capital of 5.89% does not meet the minimum requirements on the number and ratio of small shareholders as prescribed.

Therefore, Sovi proposed to cancel the public company status to match the operational orientation, focusing on production and business. If approved by shareholders, the company will proceed to compulsorily delist SVI shares on HoSE. The shares of this enterprise were approved to be listed on HoSE from March 2012.

Sovi was founded in 1968 and is among the top 5 largest packaging suppliers in the South, supplying products to consumer groups such as Unilever, Pepsico and Nestlé. The company is operating 3 factories with a capacity of 100,000 tons/year and has maintained a growth rate of 20-25% per year.

At the end of 2020, TCG Solutions bought more than 12 million SVI shares, equivalent to 94.11% of capital, with a value of nearly VND 2,100 billion. After the transaction, the Thai people officially took full decision-making power and changed all senior personnel.

After being acquired by the Thais, Sovi's revenue has grown continuously, peaking at VND1,900 billion in 2022. Net profit reached a record VND146 billion in 2020.

However, the company's business situation has suddenly adjusted in recent years. In particular, recorded profits have dropped sharply to only 76 billion VND in 2024, the lowest level in 6 years.

In the past 9 months, the company only made a net profit of 26 billion VND, the lowest level in more than 15 years, although its revenue was still more than 1,000 billion VND. The main reason was that the selling price decreased while the price of raw paper rolls increased.

Despite the decline in business, the company still maintains the habit of paying stable dividends, the cash dividend rate is maintained at 18-26%, especially in 2024 it is 26% - the highest level in 7 years. With the controlling ownership ratio, SCG Group expects to collect more than 106 billion VND in dividends in the period 2020-2024.

Source: https://dantri.com.vn/kinh-doanh/mot-cong-ty-bao-bi-viet-trong-tay-nguoi-thai-muon-roi-san-chung-khoan-20251124160150553.htm