Song Da fully divests Vinaconex P&C

February 26, 2020 | 16:20

(0) user say

Song Da Corporation has just announced putting more than 3.93 million shares of Vinaconex Power Development and Construction Investment JSC (Vinaconex P&C, UPCoM: VCP) on sale at the initial price of VND55,100 ($2.40) per share.

Song Da will make a full exit from Vinaconex P&C by selling its remaining 4 million shares

Song Da expects to collect at least VND216.6 billion ($9.4 million) in proceeds from the divestment. Earlier, Vinaconex Corporation sold nearly 16 million VCP shares on February 19, equivalent to 28.02 per cent of VCP's charter capital, giving up its large shareholder status at the company.

In addition, Vinaconex P&C also witnessed changes in personnel, with Vu Ngoc Tu appointed into the position of chairman, replacing Duong Van Mau.

Vinaconex P&C (formerly known as Cua Dat Hydroelectricity JSC), currently has a charter capital of VND569.99 billion ($24.8 million), equivalent to nearly 57 million outstanding shares.

With Vinaconex out of the picture, the three major shareholders in Vinaconex P&C are VSD Investment JSC (10.91 per cent), United Asia Investment JSC(10 per cent), and Song Da Corporation (7.08 per cent).

In the most recent transaction, United Asia Investment bought 3.2 million of the 3.5 million VCP shares it registered to buy in last July, bringing its shareholding to 5.7 million, coming in ahead of rival bidder VSD Investment.

Vinaconex P&C mainly operates in hydro projects, producing and trading electricity. Currently, the company has two subsidiaries, namely Bai Thuong Hydroelectricity JSC (charter capital of $2.17 million) and Xuan Minh Hydropower JSC ($3.26 million). Vinaconex P&C holds 51 per cent in each of these subsidiaries.

According to the audited financial report of Vinaconex P&C, the company's revenue in 2019 was VND386.53 billion ($16.8 million), down 25 per cent compared to the VND587.87 billion ($25.56 million) in 2018.

By Tan Duong

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional