Logo of Phnom Penh Post newspaper Phnom Penh Post - SEZ operator to fully own construction JV

SEZ operator to fully own construction JV

Content image - Phnom Penh Post
Phnom Penh Special Economic Zone (PPSEZ) operator PPSP will acquire the remaining 40 per cent of Sahas’ shares from its joint venture partner LCH for over $1.1 million. Hong Menea

SEZ operator to fully own construction JV

Stock-listed industrial-park operator Phnom Penh SEZ Plc (PPSP) will acquire the remaining 40 per cent of construction company Sahas E&C Co Ltd’s (Sahas) shares from its joint venture (JV) partner LCH for $1,172,514.82 after approval from the Securities and Exchange Regulator of Cambodia (SERC) on March 18.

In a filing to the Cambodia Securities Exchange (CSX) on March 22, PPSP said: “[Sahas] is primarily engage[d] in all [areas of] construction and building works including but not limited to engineering, design, procurement, project management and maintenance.”

PPSP said the appointed auditor Baker Tilly had calculated the final price for the acquisition, to be paid in two tranches – $500,000 on March 18 and $672,514.82 before April 14.

CEO Hiroshi Uematsu said PPSP established Sahas in 2017 to “get projects from outside Phnom Penh SEZ, as well as inside our zone”, referring to the 357.3ha Phnom Penh Special Economic Zone (PPSEZ) in the western part of the capital.

“Sahas has been accumulating [the] know-how of construction, especially for road[s], water system[s] and factory building through PPSEZ’s development.

“We thought that we could expand our service outside the zone in order to meet the needs of industrial sector.

“By doing so, we can increase recurring income from Sahas. We appointed Rithy Loeung, a Cambodian engineer as general manager of the company in order to localise our group’s operation,” he added.

CSX vice-chairman Ha Jong-weon said the acquisition indicated PPSP’s determination to expand and would solidify the business in the long and short term, stressing that this marks a positive development for the company as a whole.

Noting that PPSP described Sahas as “profitable” in the CSX filing, Ha said: “Acquiring [a] profitable company under their [wings] is nothing but great news for the investors.

“The company will expect more profits [as a] result, [and] more dividends as well. So in my opinion, [PPSP’s share] price [on CSX is] likely [to] increase.

“During the past week, [its stock market performance] has been outstanding. [Its] price steadily increase[d] and was the most traded shares among all the listed compan[ies]. With such news, we expect that this trend will continue,” Ha said.

MOST VIEWED

  • All foreigners' accommodations to be inspected: Sar Kheng

    The Ministry of Interior is undertaking a serious effort to inspect all the accommodations of foreigners in Cambodia – except diplomats – in order to find and identify human traffickers. Minister Sar Kheng said this would include inspections on the homes of foreigners employed by businesses, private

  • Ice cream, noodles flagged over carcinogen

    The General Department of Customs and Excise of Cambodia (GDCE) has identified three types of instant noodles and ice cream trademarks originating from Thailand, Vietnam and France that are suspected to contain ethylene oxide, which poses a cancer risk to consumers. The general department has

  • Exclusive interview with Josep Borrell Fontelles, High Representative of the EU

    CAMBODIA is hosting the 55th ASEAN Foreign Ministers’ Meeting (AMM) and Related Meetings this week with top officials from the US, China, and Russia and other countries in the region slated to attend and to meet with face-to-face with their counterparts on the sidelines. In

  • Rise in Thai air routes to Siem Reap fuels travel hopes

    Local tourism industry players are eager for regional airline Bangkok Airways Pcl’s resumption of direct flight services between the Thai capital and Siem Reap town on August 1 – home of Cambodia’s awe-inspiring Angkor Archaeological Park – which is expected to boost the growth rate of

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker

  • NBC eyes KHQR payments in Laos, Vietnam

    The National Bank of Cambodia (NBC) is working with Lao and Vietnamese authorities to expand the use of KHQR code cross-border payment systems to promote trade and investment as well as increase the scope of regional economic linkages, and in particular, facilitate remittances from overseas