The Viettel Group has signed an agreement with Vietnam Construction and Import-Export JSC (Vinaconex), to buy a 70 per cent stake in Cam Pha Cement JSC.

Military run-Viettel also purchased Cam Pha Cement’s debts guaranteed by VCG, the Dau Tu Chung Khoan newspaper said, adding that the deal had a total value of US$127m. Cam Pha will sell its cement to military-run construction companies, according to newswire Cafef.vn.

With the share sale, Vinaconex will cut its holding in the loss-making cement unit to 30 per cent and avoid further losses from the unit. Vinaconex has paid VND2.4trn (US$113.7m) worth of debts owed by Cam Pha Cement.

Cam Pha Cement made an accumulated loss of VND1.59trn at end-2012, excluding a loss of VND213 from forex rate fluctuations.