The water industry is set to witness a flood of M&A in the near future as many big players plan to stretch out in the southern region.

 

Bình Dương Water Environment JSC (Biwase), a prominent name in the water industry, has approved a plan of acquiring stakes in five companies operating in the water and environmental sanitation sectors in Long An and Quảng Bình provinces.

 

They are DNP - Long An Water Infrastructure Investment Joint-Stock Company, Châu Thành Urban Construction Joint Stock Company, Cần Giuộc Urban Project Joint Stock Company, Bằng Tâm Water And Environment Corporation and DNP Quảng Bình Water Infrastructure Investment Joint Stock Company.

 

In the above list, there are three companies under the umbrella of DNP holding, formerly known as Đồng Nai plastic, namely DNP - Long An Water Infrastructure Investment Joint-Stock Company, DNP Quảng Bình Water Infrastructure Investment Joint Stock Company and Châu Thành Urban Construction Joint Stock Company, with ownership rates of 87.98 per cent, 89.9 per cent, and 96.06 per cent, respectively.

 

Of them, DNP - Long An Water Infrastructure Investment Joint-Stock Company, having a charter capital of VNĐ786.29 billion, owns Nhị Thành water plant with a designed capacity of 60,000cu.m per day and night, supplying clean water to many areas in the southern province of Long An.

 

DNP holding currently has 15 factories producing plastic and clean water, with a total capacity of plastic products of 8,500 tonnes per month and 700,000cu.m of clean water per day.

 

Thus, Biwase mainly acquires water supply enterprises in DNP holding's ecosystem to expand its operation area towards the southern area.

 

In 2022, Biwase invested a total of VNĐ294 billion in purchasing shares of two companies, namely Cần Thơ Water Supply and Sewerage JSC and Cần Thơ 2 Water Supply JSC. This move has increased the number of Biwase affiliates in the water industry to four, with total investment reaching VNĐ768 billion, accounting for nearly 8 per cent of Biwase’s assets. The company’s M&A plan for this year shows its ambition to expand its scale through M&As.

 

With the ambition to become a leading enterprise in the field of water supply in the South, Biwase continues to acquire companies in the same industry in the southern provinces of Long An, Bình Phước and Bến Tre.

 

Đồng Nai Water Supply Joint Stock Company plans to purchase 2.5 million shares of Gia Tân Water Supply Joint Stock Company, at the price of VNĐ4,000 per share, with expected time in the first and second quarters of 2023.

 

As of December 31, 2022, Đồng Nai Water Supply owns 25 per cent of capital in Gia Tân Water Supply, equivalent to an investment value of VNĐ50 billion.

 

Gia Tân Water Supply was established on November 1, 2016, headquartered in Đồng Nai, mainly operating in the field of exploiting and filtering water for daily life, urban and industrial purposes, installation of pumping stations, and construction of water supply pipelines. The legal representative includes Chairman of the Board of Directors Hoàng Anh Tuấn and General Director Nguyễn Văn Thiền.

 

Notably, Nguyễn Văn Thiền is also the Chairman of the Board of Directors of Biwase, which owns 31.52 per cent of capital in Gia Tân Water Supply.

 

Thủ Dầu Một Water Joint Stock Company owns 37.42 per cent of charter capital in Biwase, owns 20.9 per cent of capital at Gia Tân Water Supply and owns 12.06 per cent of Đồng Nai Water Supply.

 

Thus, Thủ Dầu Một Water is a cross-owner of many water supply enterprises in Đồng Nai and Bình Dương, through direct or indirect ownership through Biwase. Thủ Dầu Một Water was established in 2013, with the main business being clean water business, and currently has a charter capital of VNĐ200 billion.

 

It can be seen that Biwase's ambition is also Thủ Dầu Một’s ambition, which is to dominate the market share of water supply in the southern provinces.

 

Biwase currently has charter capital of VNĐ1.93 trillion, equity of VNĐ4.53 trillion, and total assets of VNĐ9.99 trillion. In 2022, the company recorded consolidated revenue of VNĐ3.48 trillion, consolidated profit after tax of VNĐ742.7 billion, equivalent to basic earnings per share of VNĐ3,195.

 

Thủ Dầu Một Water currently has a charter capital of VNĐ1 trillion, equity of VNĐ2 trillion, and total assets of VNĐ2.40 trillion. In 2022, the company achieved consolidated revenue of 478.9 billion, profit after tax of VNĐ220.4 billion, equivalent to basic earnings per share of VNĐ2,028. VNS