Vietnam’s VCI Group eyes SAF market with $1bn NASDAQ merger

Vietnam Biofuels Development Joint Stock Company (VNB) is looking to enter into the expanding sustainable aviation fuel market following a definitive merger agreement with International Media Acquisition Corp. (IMAQ).

The $1b deal, will see the combined entity rebranded as VI Energy and listed on the NASDAQ.

“Upon completion and with adequate funding, we plan to immediately implement one of our post-merger strategies by tapping into the profitable and currently underserved market for SAF, which is expected to reach $325bn by 2030,” said Navin Sidhu, VCI Biofuels Group CEO.

The Vietnamese ethanol production company, which has operated since 2014, currently specialises in producing fuel, solvent and food alcohol.

“With access to the dynamic US capital markets and the multitude of financing options it brings, we believe that the group will be in a very strong and enviable position to expand organically while leveraging on acquisition growth that could add tremendous value for shareholders and all stakeholders alike,” Sidhu added.

IMAQ leadership expressed confidence in the merger after a three-year search for the right partner. Yu-Fang Chiu, Chairperson, CEO and CFO of IMAQ, noted, “We believe that the VCI Biofuels Group is well positioned in the renewable energy sector, with a track record of a decade in Vietnam’s biofuel and ethanol market.”

The merger has received unanimous approval from the boards of directors of both companies, though it remains subject to regulatory approvals and IMAQ stockholder approval.

IMAQ is a blank check company incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination with one or more businesses.