HO CHI MINH CITY, NNA - Japanese ceremonial service provider Cocolonet Co. will buy a 20 percent stake in Vietnam’s Cemetery Park Investment and Management Co. to capitalize on a flurry of cemetery constructions in the Southeast Asian country.
The Japanese company is scheduled to acquire the shares worth $4.7 million by June next year from Phu Thien Phat Service & Trading Co., which wholly owns Cemetery Park Investment and Management based in Ho Chi Minh City, Cocolonet said in a statement on Tuesday.
It will be Cocolonet’s second overseas investment after it acquired 33.3 percent of shares in a major Chinese stone processor and dealer, Tianjin Zhongjian Wanli Stone Co., in 2010.
Cocolonet, which provides funeral and wedding services as well as selling burial-related items such as headstones, caskets, and flowers, gives top priority to “investing in new areas and overseas” in its three-year management plan running to March 2022.
Cocolonet sees a business chance in Vietnam where “there is a growing demand for headstones as large-scale cemeteries have been built in the suburbs of major cities,” the statement said. The company has determined that Cemetery Park Investment and Management can utilize Cocolonet’s ample know-how in a wide range of fields from funeral services to headstone sales for business expansion, a corporate planning official said.
Cemetery Park Investment and Management is currently capitalized at $21.27 million. The capital will be reduced to $8.5 million when Cocolonet completes the buyout, the statement said.