The plans of the Vietnamese Pomina Steel for a strategic partnership with the Japanese Nansei were officially approved at the meeting of shareholders on Friday. It is noted that Nansei will become a shareholder with a 20 percent share of the Vietnamese steel producer due to investments in the amount of almost 702 billion dong (29.6 million dollars).
The Japanese company will purchase more than 70.1 million additional shares at a price of VND 10,000 per share. The private placement will be divided into two tranches to increase equity capital, replenish working capital and prepare financing for the deployment of the blast furnace restart plan in 2024. At the first stage, the company will offer more than 10.6 million shares in August 2023. The second stage will include the issue of almost 59.6 million shares in September 2024.
"Pomina" plans to use the proceeds to expand its production and commercial activities, which includes restarting the blast furnace with a capacity of 1 million tons per hour at "Pomina-3". The company stopped operating the blast furnace last September to minimize losses due to the depressed real estate market. The total capacity of Pomina is 1.5 million tons of smelting per hour and 1.1 million tons of construction grade rolled steel per hour.
