VietNamNet Bridge – The financial fund Aureos Capital Limited (ACL) will pay US$3mil for a stake in Binh Duong-based Truong Thanh Furniture Corporation, said an executive of the local company.

Ngo Hong Thu, deputy director of the furniture maker, said ACL agreed to spend US$3mil for a stake of the company, which is valued at US$10mil.

The two parties are looking for a consultant on the deal and will finish the trade late this month, she said but did not elaborate the percentage of the holding for the fund.

She said that selling shares to ACL is part of the company's plan to list on the stock market next year, under which the company will sell part of its shares to outsiders and operate as a holding company and subsidiaries. This company now operates two factories in the southern province of Binh Duong.

Vo Truong Thanh, founder of Truong Thanh Furniture Corporation, has until now established seven factories producing wooden furniture items under four legal entities in Binh Duong, Daklak Province, HCMC, and Laos.

Thu said that after the Binh Duong-based company is listed on the stock market, "we will brace for the holding corporation model, with the Binh Duong-based company as the parent company and others as subsidiaries."

Truong Thanh Group is one of the leading wooden furniture manufacturers in Vietnam. It is investing US$5mil to build warehouses, workshops producing high-class furniture in Binh Duong and Daklak Province to double its current capacity to 2,000-2,500 containers of products each year.

The company sets next year's export revenue target of US$70mil compared to US$40mil this year and US$30mil last year.

(Source: SGT)