PJICO to sell shares to Korean non-insurance firm

PJICO will sell 20 per cent of its charter capital to a South Korean investor. - Photo vietstock.vn

This plan was released at PJICO’s annual shareholder meeting in Ha Noi on Wednesday

The company will offer 17,743,555 shares, equivalent to 20 per cent of its charter capital, to Samsung Fire&Marine Insurance Co Ltd, a leading non-insurance company of South Korea.

Offer price will be not lower than the minimum price that was proposed in an advisory report on fixing corporate value of VP Bank Securities Co Ltd (VPBS) and the price that was traded on the stock exchange on October 20, 2015.

The company plans to issue the shares this year after the Ministry of Finance approves in principle to change PJICO’s charter capital and the State Securities Commission also approves PJICO sale of shares to the South Korean partner, cafef.vn reported.

After issuing the shares, PJICO’s shares owned by the Viet Nam National Petroleum Group (Petrolimex) will reduce from 51.18 per cent to 40.95 per cent, while PJICO’s shares owned by Vietcombank will drop from 10.04 per cent to 8.03 per cent, according to PJICO’s management board.

Meanwhile, at PJICO, shares held by Viet Nam Re-insurance Corporation will fall from 8.79 per cent to 7.03 per cent and those owned by Hanel Co Ltd will decline from one per cent to 0.8 per cent.

Samsung Fire&Marine Insurance holds 20 per cent of PJICO’s charter capital.

Also at the shareholder meeting on April 26, PJICO’s management board submitted to shareholders the business plan for this year.

This year, the company expects to achieve insurance revenue of VND2.5 trillion (US$109.6 million), excluding revenue from insurance of fishing boats, a year-on-year increase of 6.7 per cent.

Its pre-tax profit will reach VND140 billion, an increase of 11.6 per cent against the same period last year.

The company announced its target of minimum dividend of 10 per cent for this year.

In 2016, PJICO’s total insurance revenue reached VND2.48 trillion, a year-on-year growth of 11.4 per cent. Its pre-tax profit reached VND125.4 billion, a year-on-year surge of five per cent.

Its dividend for 2016 was 11 per cent, one per cent higher than the plan approved by the shareholder meeting in 2015.