NBB to take over Quang Ngai miner

HCM CITY — NBB Investment Co (NBB) will increase its stake in Quang Ngai Mineral Investment Joint Stock Co (QMI) from 64 per cent to 90 per cent by the end of March, as part of its overall plan to effect a complete takeover.

The NBB would achieve the higher ownership in the QMI through an offer to current QMI shareholders to buy their shares, said the head of NBB's department of finance and investment, Pham Hong Phu.

"After the deal, the QMI will be incorporated into the NBB as a subsidiary company, operating under unified management," Phu said.

NBB's other subsidiaries currently include Hung Thanh Co Ltd, NBB Industrial Joint Stock Co and Sai Gon Highlands Joint Stock Co.

NBB, a blue chip share on the HCM City Stock Exchange, specialises in real estate development and trading, infrastructure construction and, to a lesser extent, mining.

"The company expects to extend its mining arm in the future and Quang Ngai Mineral Investment Co has a large potential in this field," said Phu.

The QMI, based in the central province of Quang Ngai, owns granite processing and construction stone facilities as well as granite and titanium mines. Last month, the company was granted a licence to expore for titanium ore on an area of 1,025ha along 16km of coast in the communes of Duc Thang, Duc Chanh, Duc Thanh, Duc Minh and Duc Phong in Quang Ngai's Mo Duc District.

The QMI could not be reached this week for comment.

The NBB last year earned VND342.5 billion ($18 million), up 92 per cent from 2008 totals, and posted a net profit of VND91 billion ($4.8 million), representing an increase of 74 per cent over the previous year. — VNS