BCG: Fulfilling the Company’s M&A Prospect and Development Strategy for the Period of 2016 – 2020

09/22/2016

For the last six months of 2016, Bamboo Capital Joint Stock Company (BCG) has committed to fulfilling and exceeding the 2016 business plan which was passed in the shareholders’ meeting. In order to accomplish this goal, BCG has redirected its development strategy and implementation plan for the next 5-year period.

BCG’s M&A prospect has been clearly shaped by investing in Thanh Vu Tay Ninh, Auto 1-5 and Vinacafe Dalat companies during the first six months of 2016. BCG is currently owning 8 subsidiaries & 11 affiliates thus far, directly and indirectly. Besides, BCG has gradually redirected its development strategy by focusing on these four main fields: M&A investments and investment banking services; trade and product distribution; development on infrastructure and real estate projects; and renewable energy projects. For investments not included in the above areas, BCG plans to restructure by withdrawing its capital. Specifically, BCG has recently transferred its capital contribution at BCG-Truong Thanh, which is a joint venture between BCG and Truong Thanh Viet Nam Development Investment One Member Company Limited for the project of building a waste treatment plant in Lam Dong. Not only this project is at the early stage of pre-feasibility study, but BCG has also not invested a lot of capital in the project.

Casa Marina Resort project has begun construction in September 2015 and has now completed structural works, with expectation to fully operate and officially open in Q4 2016.

Due to unfavorable business results within the first six months of 2016, BCG will need to focus on the following key points for the remaining six months: Completing the Casa Marina Resort project in Quy Nhon and putting it into operation by Q4 2016; starting the BOT investment project of expanding and upgrading Interstates 830 & 824 in Duc Hoa District, Ben Luc, Long An Province with a total investment of up to 49 million USD; investment in sweet potato starch processing plant in Vinh Long with a capacity of over 150 tons of finished goods per day; promoting agricultural trades including cocoa, coffee, cassava starch, etc.; implementing research and investment in solar farm projects in Long An, Quy Nhon, Binh Thuan, Vinh Long with a total capacity of 50 – 100MW per plant. For those companies which have been acquired lately such as Auto 1-5 and Thanh Vu Tay Ninh, BCG will focus on restructuring those companies to improve their financial capability, liquidity and to increase sales.

With the development strategy as of today, BCG has gradually fulfilled its comprehensive picture in order to achieve the objective of becoming one of the best M&A investment firms. Being highly confident with what the Company can achieve in the future, BCG’s founding shareholders have repurchased BCG shares from other major shareholders who plan to reduce their percentages of ownership. Also, this is to simultaneously affirm that BCG’s founding shareholders are determined and committed to building the Company to be one of the most effective investment firms.