Thục Anh Nguyen Tran, Investment Director of Coteccons, signs the partnership agreement with Alexandr Donov, CFO of Kusto Group.
On April 17, Coteccons Construction Joint Stock Company (stock code: CTD) and Kusto Group entered into a strategic partnership agreement for the establishment and implementation of investment activities in Vietnam. Specifically, Kusto Group commits to invest USD 200 million through co-investment with Coteccons during the period 2024-2028.
Both parties will invest in areas that align with their future growth ambitions. Some of the sectors mentioned include M&A, social housing, high-tech construction, and advanced construction technologies. All investments will prioritize transparency.
Alexander Donov, Member of the Board of Directors and CFO of Kusto Group, said: “We recognize the potential that Vietnam holds and believe that there is still room for growth. Our partnership with Coteccons is a tangible commitment to making Vietnam a key investment destination. We intend to invest in phases amounting to USD 200 million between 2024 and 2028. I am confident that our collaboration can create more jobs, deliver greater value to society and support both companies’ sustainable development”.
Kusto Group’s CFO also highlighted Coteccons’ strengths in having a large workforce with many skilled engineers, enabling the company to undertake complex construction projects. Secondly, the company has a long history and a proven track record of winning major projects in Vietnam.
Alexander Donov, CFO of Kusto Group.
For Coteccons, Bolat Duisenov, Chairman of the Board of Directors, stated: “I am confident that this partnership will unlock growth potential and create success for both companies. Any business that aspires to sustainable growth must diversify its operations. This partnership will be a key component in strengthening Coteccons, contributing to the future development of the construction industry, and offering a wider range of services to our customers. Transparency and the interests of our shareholders will always be at the forefront of our priorities”.
Bolat Duisenov added that investment partnerships in the construction sector are becoming increasingly common. He also mentioned having worked with Kusto Group’s Chairman, who has expressed interest in social housing projects in Vietnam.
He went on to share that he is currently the chief representative of Kusto Group in Vietnam. Since becoming Chairman of Coteccons, Bolat has reaffirmed his commitment to dedicating all his energy to the company’s operations. “I do not work for the benefit of any particular group of shareholders. I work for all Coteccons shareholders. I will never favor or show preference to anyone in my work”, Bolat Duisenov asserted.
Bolat Duisenov, Chairman of Coteccons’ Board of Directors.
Speaking at the press conference, Thục Anh Nguyen Tran, Investment Director of Coteccons, said that the company will seek out investment opportunities in entities that can strengthen its capabilities. Additionally, Coteccons will explore M&A opportunities with reasonably valued businesses that can contribute to the construction ecosystem, thereby increasing revenue and profitability. Coteccons prioritizes companies with established positions in their respective industries rather than emerging businesses or young start-ups.
Kusto Group was established in Kazakhstan in the 1990s. It is a diversified conglomerate operating in various sectors such as agriculture, oil and gas, building materials, and more, with annual revenues exceeding USD 1 billion. The group currently has operations in over nine countries, employs 8,000 people, and engages over 4,800 contractors.
