HO CHI MINH CITY, NNA – Japanese information and communication technology equipment trader Suntelephone Co. will buy Vietnamese peer Sao Nam An Trading Service Corp., establishing a foothold in Vietnam as part of its broader efforts for business expansion in Southeast Asia.
Suntelephone said Monday it plans to acquire a 99.9-percent stake in the Vietnamese office and security equipment wholesaler on Oct. 25. The value of the deal has not been disclosed.
The move is aimed at acquiring sales and sourcing networks at once in Vietnam, where the Tokyo-based ICT gear trader does not have a business foundation, spokesman Kuninobu Taira told NNA Tuesday.
The Ho Chi Minh City-based trader, which mainly deals in equipment in the two fields, boasts over 400 agents and more than 10,000 corporate clients across the Southeast Asian country, according to a statement released by Suntelephone.
Sao Nam An also has substantial sourcing networks such as Panasonic Corp., Konica Minolta Inc., Axis Communications AB and Robert Bosch GmbH, according to Taira.
The Vietnamese wholesaler posted a 6.1 billion dong ($262,800) net profit on sales of 296.1 billion dong in 2018, the statement said.
Suntelephone intends to create synergy with Sao Nam An as they are both gearing up to enhance solution services with the use of surveillance cameras, he said. The Japanese firm will send senior executives to the board of the acquired firm.
Suntelephone has tapped solar power business in Thailand and allied with an agent in Myanmar, aiming to expand business in other Southeast Asian nations.