Coteccons and Kusto Group signed a strategic co-investment cooperation agreement in Vietnam

On April 17, in Hanoi, Coteccons Construction Joint Stock Company (HoSE: CTD) and Kusto Group signed a strategic cooperation agreement to establish and implement investment activities in the Vietnamese market.

The cooperation between Kusto Group and Coteccons not only benefits both companies, but also benefits the market and Vietnamese people with high-quality development portfolios that create great value.

Accordingly, Kusto Group commits to invest 200 million USD through co-investment cooperation with Coteccons in the period from 2024 to 2028.

This partnership allows Coteccons to drive efficiency in its core business by leveraging the support of strategic investments to increase the creation of comprehensive solutions for Coteccons' traditional customers, creating an advantage to ensure a long-term customer portfolio, thereby contributing to increasing revenue and improving profit margins in a context where the construction industry still focuses mainly on low prices as a basis for competition.

In addition, with this partnership, based on the shared values of both Kusto Group and Coteccons, which are determined to achieve sustainable development, Kusto Group is committed to continuing to maintain its investment pace in the Vietnamese market since 2005.

Mr. Alexandr Donov - Member of the Board of Directors and Chief Financial Officer of Kusto Group expressed his belief that Coteccons, an important strategic partner of Kusto, possesses the expertise and capacity to support us in finding and identifying suitable investment opportunities, creating added value from this synergy.

“We are committed to investing in phases worth USD 200 million, starting from 2024 and lasting until 2028. This capital will be strategically allocated to take advantage of the combined strengths of Kusto Group and Coteccons,” Mr. Alexandr Donov emphasized.

It is known that the collaboration of the two enterprises is expected to open up positive signals in the sustainable development picture of Vietnam in general and the construction industry in particular.

The two sides will also expand investment development in areas to anticipate future growth opportunities, such as high technology, ecosystems for industrial real estate, expanding and upgrading the supply chain with ecosystems serving core construction such as: electromechanical, construction materials (steel structures, aluminum and glass, etc.), precast concrete and infrastructure construction, and continue to seek opportunities to fulfill commitments to develop real estate in the social housing segment.

Kusto Group and Coteccons will promote green construction practices and accelerate investment in high-tech research in construction in Vietnam through programs to support capacity building and increase the value of intellectual property for talented Vietnamese engineers.

In the short term, both parties will prioritize investment opportunities and performance based on the experience of experts from both sides, accelerate cost optimization initiatives and improve core business performance, including building supply-demand plans between contractors, customers and subcontractors, suppliers, optimizing the service portfolio to expand the scope of service for Coteccons' traditional customers. In the long term, this platform will be the basis for Coteccons to implement its revenue diversification strategy.

According to Mr. Bolat Duisenov, Chairman of the Board of Directors of Coteccons, the strategic cooperation with Kusto Group is consistent with our mission and strategy. This is an important piece to comprehensively change and promote the development of the construction industry with a commitment to sustainable development. This is also an extension for us to aim for the image of "Industry Leader" to contribute to shaping the healthy development of the construction industry.

As strategic partners, the two companies promote transparency, professionalism, and harmonization of stakeholder values. With Kusto Group’s financial resources and international management experience, and Coteccons’ reputation in Vietnam, this cooperation not only benefits both companies, but also the Vietnamese market and people with high-quality development portfolios that create great value.”

With one of the highest economic growth rates in the region and the world, a population of 100 million, a rapidly growing young population and middle class, and a high urbanization rate, Vietnam is an attractive destination for foreign businesses and investors.

Established in 2004, Coteccons has become a leading construction company in Vietnam. The company has grown in both scale and reputation in implementing world-class projects with diverse services and fields such as: Residential, Commercial, Hotel, Infrastructure and Industrial. Constantly improving and developing, Coteccons possesses 4 unique and different values, called "COTECCONS INSIDE" that have created prestige and brand.

Specifically, Coteccons promotes a sustainable commitment to the environment in all projects; Diversifies services and products; Focuses on customer experience and brings added values in the process of operation and business cooperation.

Kusto Group was officially established by Yerkin Tatishev and 3 associates on the basis of successful projects they had previously carried out. Up to now, Kusto Group has reached the scale of a multi-industry corporation in key areas such as agricultural production, oil and gas, construction, construction materials production... with a total annual revenue exceeding 1 billion USD.

Kusto Group is currently operating effectively in 9 countries: Kazakhstan, Uzbekistan, Italy, Canada, USA, Israel, Singapore, Ukraine and Vietnam with over 8,000 employees and over 4,800 subcontractors. The Group's member units provide high-standard products, services and solutions to the market.

In Vietnam, Kusto Group, through Kusto Vietnam headquartered in Ho Chi Minh City, has also been operating for the past 15 years and has contributed to the success stories of leading enterprises. Kusto Vietnam focuses on fast-growing enterprises to develop prospects from the advantages of the Company's expertise and flexible approach.

Kusto Vietnam's portfolio includes companies in real estate, construction, building materials, transportation and logistics, retail and other consumer goods industries.

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