New York, NY, Sept. 25, 2018 (GLOBE NEWSWIRE) -- PHI Group, Inc. (www.phiglobal.com) (OTCQB:PHIL), a U.S. diversified holding company focused on mergers and acquisitions and investments in select industries and special situations, today announced that the Company has signed an agreement to acquire 51% of Vinafilms Joint Stock Company (www.vinafilms.com.vn) with Preferred Stock of PHI Group, Inc.
According to the Stock Swap Agreement dated September 20, 2018 between the Company and Vinafilms' majority shareholder, PHI Group will issue 50 million shares of its Class A Series III Preferred Stock in exchange for 51% of Vinafilms JSC. This transaction is scheduled to close by the end of September 2018.
Vinafilms has been in business for more than 13 years and generated about $25 million in revenues and $765,000 in EBITDA in 2017. It has recently installed a German state-of-the-art plastic film processing system and will add two more of these to meet the growing domestic and international demand for its products. Vinafilms also plans to enter a joint venture with a leading Vietnamese plastic bag manufacturing company with an aim to bring combined revenues to over $150 million per year by the end of 2019. PHI Group's management believes the acquisition of Vinafilms should enable PHIL to qualify for an uplist to the Nasdaq Stock Market in the very near future.
PHI Group will use its wholly owned subsidiary American Pacific Plastics, Inc. as the special-purpose vehicle to hold the 51% interest in Vinafilms and plans to file a registration statement with the Securities and Exchange Commission for it to become a separate, fully reporting, publicly traded entity, which should help facilitate financing Vinafilms' growth and accelerate its rollup strategy. PHI Group has recently engaged Grant Thornton Vietnam Ltd. (www.grantthornton.com.vn.) to conduct an independent valuation to determine the fair-market value of Vinafilms JSC.
Vinafilms provides a variety of plastic film products, including PE film macromolecules, PE films, polyester and polyprolylene films, metalized films, etc. for use in construction, food packaging, textile products, pharmaceuticals, and many other goods. These films include many types of coatings, such as silicone, adhesive, pre-mask, corona, print treatments, and others for labels, printing, and flexible packaging purposes. Vinafilms' customers include many reputable and loyal Vietnamese and international companies such as Saigon Plastic Packaging Co., KyVy, Huhtamaki, I.S., Vinamilk (https://www.vinamilk.com.vn/en), Tribeco (http://tribeco.com.vn/en/), Trieu Chen Co. Ltd., Friesland Campina, Tong Yuan Packaging Co., and PepsiCo (https://suntorypepsico.vn/).
Henry Fahman, Chairman and CEO of PHI Group, stated: "We expect to close this transaction before month's end and believe that the consolidated operating results from this acquisition should have a very positive impact on our company going forward."
Ms. Do Thi Nghieu, chairperson and majority shareholder of Vinafilms JSC, said: "We believe by joining forces with PHI we will be better positioned to tap the U.S. and international capital markets and take advantage of our combined strengths to implement both organic growth and acquisition plans for Vinafilms in the near future."
About PHI Group, Inc.
PHI Group (www.phiglobal.com) primarily focuses on mergers and acquisitions and invests in select industries and special situations that may substantially enhance shareholder value. PHI Group also provides M&A and consulting services through its wholly owned subsidiary, PHI Capital Holdings, Inc. (www.phicapitalholdings.com).
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PHI Group, Inc.
Source: PHI Group, Inc.