Kusto has been here since the mid-2000s and have witnessed the rapid development of the country, with supportive Government policies. We are very positive of Vietnamese corporate growth as Vietnamese entrepreneurs are very active, down-to-earth and dare to try new things. Last year GDP growth was 7.08 per cent, the fastest rate in 11 years. We continue to believe that the country will grow keep the high growth rates in the coming years with improved infrastructure, attracting further foreign direct investment.
Invested in Vietnam since 2005, owning a portfolio of up to 700 million USD, Kusto Vietnam is planning to expand their portfolio in the market when opportunities arise. In 14 years, Kusto has completed 10 successful investments across real estate, construction and building materials, transportation and logistics, retail, and other consumer-driven sectors. Diamond Island, completed in October 2018, has successfully sold 98% of the units (1,323 units). Our other investments in the period such as Coteccons and StarCemt have also achieved remarkable successes. Value investment is our philosophy for all markets that we operate in. Looking ahead, Kusto is looking for businesses and the management that have strong growth potential with innovative mindsets.
Ever since Kustocem has become an investor in Coteccons back in 2012, we are one of the first foreign investors in Coteccons. We have closely worked with, and supported, the Company, the BOD, and the BOM, despite Coteccons’ recent declining financial performance.
However, the rationale behind and the benefits of M&A strategy between Coteccons and Ricons are unclear.
The proposed merger with Ricons would not bring additional technical or operational capabilities that our company does not already have. Kustocem believes that Coteccons shareholders will benefit from the management focusing the company’s resources on developing our own platform instead of going down the M&A path.
Using the company’s shares to pay for M&A transactions does not make sense until the financial performance of Coteccons improves and the share price reaches the level that it deserves.
Therefore, Kustocem must inform the AGM that, at this time, we cannot in good faith vote for the merger or delegate the power to approve the merger to the BOD.
We hope all Coteccons shareholders would understand our position and respectfully request the BOD and the BOM to cease all works related to the proposed merger with Ricons and to focus on steering our company back on the path of success and strong performance.
We believe that Coteccons has a great team of hard-working professionals that is fully capable of protecting and strengthening its market leader position, growth rates and margins.KUSTOCEM-POSITION-STATEMENT-ON-THE-PROPOSED-MERGER-WITH-RICONS