Mumbai: Vietnam Industrial Investments Ltd said Prudential Plc. fund management unit increased its offer to $13.3 million (Rs54.53 crore) for its biggest steel assets after the company recommended a rival bid from India’s Tata Steel Ltd.
Tata’s Natsteel Asia Pte Ltd had agreed in March to buy 70% of Vinausteel Ltd and its entire SSE Steel Ltd unit for $12 million. Prudential Vietnam Securities Investment Fund Management Co. offered $12.3 million in cash, earlier this month.
Vietnam Industrial had said on 15 May that Prudential’s offer carries more risk than that of NatSteel Asia. Vietnam Industrial’s chief operating officer Alan Young couldn’t immediately be reached for a comment. Tata Steel’s deputy managing director T. Mukherjee declined to comment.
Vinausteel operates a steel rolling mill in the northern port city of Haiphong, which had sales last year of 138,980 tonnes and profit of $1.7 million. SSE Steel operates a high-tensile rebar rolling mill in Haiphong, which reported rebar sales last year of 100,133 tonnes and wire-rod sales of 17,239 tonnes, and a profit of about $222,000.
Vietnam Industrial listed on the Australian stock exchange in 1995, and was profitable every year until 2003. After three years of losses, the company reported a profit again last year.