Biwase (BWE) Splits Into 4 Subsidiaries, Approves 13% Cash Dividend for 2025

Overview

Biwase (BWE), listed on HOSE, announced a restructuring plan to split its operations into four specialized single-member limited liability companies, wholly owned by the parent. The company also approved a 13% cash dividend for 2025 and plans a capital raise of over VND 1,162 billion to fund acquisitions and investments. The move is designed to enhance governance, operational efficiency, and appeal to foreign investors.

Key Facts

• Biwase will transfer assets and liabilities from eight branches to form four new wholly-owned subsidiaries (single-member LLCs).
• The parent company’s charter capital remains unchanged at over VND 2,199 billion.
• The restructuring is expected to be completed within 2026.
• A 13% cash dividend for 2025 was approved, equivalent to VND 1,300 per share, payable on May 20, 2026.
• Biwase plans to issue over 31.3 million shares to existing shareholders at VND 37,000 per share (ratio 7:1), raising approximately VND 1,162 billion.
• Proceeds will be used: VND 164 billion to acquire shares in Ninh Thuan Water (NNT), VND 225 billion for the first phase of a 24MW waste-to-energy plant, and VND 773 billion to repay bank loans.
• For 2026, Biwase targets consolidated revenue of at least VND 5,400 billion and consolidated net profit of VND 770 billion, down 14% from 2025.

What Happened

At its 2026 annual general meeting, Biwase’s management announced a restructuring plan to convert eight branches into four specialized single-member limited liability companies. The restructuring aims to improve autonomy, accountability, risk management, and align with international governance standards, thereby attracting more foreign investment. The parent company will retain 100% ownership of the new subsidiaries, and all employees will be transferred to ensure operational stability.

In addition, the company approved a 13% cash dividend for 2025 and outlined a capital raising plan through a rights issue. The funds will be used to acquire a stake in Ninh Thuan Water, invest in a waste-to-energy plant, and repay debt. The company also set 2026 targets of VND 5,400 billion in revenue and VND 770 billion in net profit, with a goal to exceed 1 million m3/day in water supply capacity.

Market Context

BWE shares closed at VND 43,000 on April 10, 2026, up 0.23% with low volume of 117,800 shares. The stock has been relatively stable, reflecting the defensive nature of the water utility sector. The restructuring and dividend announcement may provide near-term support, though the 14% profit decline target for 2026 could weigh on sentiment. Biwase operates in the water and environment sector on HOSE, with a growing presence across southern and central Vietnam.

Strategic Significance

The restructuring into specialized subsidiaries is a strategic move to enhance operational focus and governance, potentially making the company more attractive to foreign investors. The capital raise supports expansion into water supply and waste-to-energy, diversifying revenue streams. However, the 2026 profit target decline suggests near-term headwinds from investment costs and restructuring expenses. Long-term, the company aims to leverage its scale and expertise to capture growth in Vietnam’s water infrastructure.

What to Watch

• Completion timeline for the subsidiary formation and any regulatory approvals.
• Q2 2026 earnings report to assess revenue and profit trends against the full-year target.
• Progress of the waste-to-energy plant and Ninh Thuan Water acquisition.
• Foreign ownership levels post-restructuring, as the company expects increased foreign interest.
• Dividend payment execution on May 20, 2026, and future dividend policy.