CVCP,CVCP,Cavico Subsidiary Sells 5% Stake to Hanoi Building Bank in Preparation for Domestic Listing on the Vietnamese Stock Exchange
Thursday September 28, 10:30 am ET
LOS ANGELES, CA, and HANOI, VIETNAM--(MARKET WIRE)--Sep 28, 2006 -- Cavico Corporation (Other OTC:CVCP.PK - News), a Vietnamese company working in the fields of infrastructure development, including the construction of hydropower facilities, dams, bridges, roads, mines and urban buildings throughout Vietnam and the Pacific Rim, announced today that its Cavico Mining subsidiary, which is 50 percent owned by Cavico Corporation, sold a 5% stake to Hanoi Building Bank. The bank paid face value of 1.55 billion dong ($96,660) for the stake. The firm has a registered capital value of $1.94 million.
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Cavico Mining Director Hua Thanh Binh said, "We are completing the paperwork to apply soon for a license on a share listing." According to Vietnamese State media on Tuesday, Hanoi Building Bank's General Director Bui Thi Mai said that taking a stake in Cavico Mining was part of the bank's strategy to diversify its business.
Bui Quang Ha, CEO of Cavico Corporation, said, "The sale of a minority stake in Cavico Mining is a first step in listing the subsidiary on the Vietnamese Stock Exchange. This is something that we feel will be valuable not only to Cavico Mining stakeholders, but also to Cavico Corporation shareholders. Maximizing the value of Cavico and its operations is our primary goal. We are striving to bring increased value to our shareholders through diversification of ownership, listing of subsidiary companies on the national exchange, attraction of U.S. investment capital and our continued organic expansion throughout Vietnam."
On August 12, the Boston Globe reported in an article that, "The government has a stated plan to attract $25 billion in direct foreign investment over the next five years, and investors poured $5.8 billion into Vietnam last year alone, helping the economy grow 8.5 percent and making it one of Asia's hottest, according to the Asian Development Bank."
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