Vinaconex regains dominance in NEDI2

June 25, 2021 | 17:50
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Vietnam Construction and Import-Export JSC (Vinaconex, HNX: VCG) bought nearly seven million shares of Northern Electricity Development and Investment JSC No.2 (NEDI2, UPCom: ND2).
Vinaconex regains dominance in NEDI2
NEDI2 is once again a subsidiary of Vinaconex

In particular, Vinaconex has purchased 6,430,961 shares of ND2. After the transaction, Vinaconex increases its ownership in NEDI2 from 38 to 51.1 per cent, with a total of 25.5 million shares, turning NEDI2 into a subsidiary of Vinaconex from June 23.

Previously, on January 7, Vinaconex announced that NEDI2 was no longer its subsidiary after the company transferred 17,497,886 ND2 shares, equivalent to 35 per cent of the charter capital of NEDI2 in January this year. However, the company retained 19.12 million ND2 shares, equivalent to 38.24 per cent of the charter capital.

Notably, in the first half, Vinaconex divested two other companies. In particular, Vinaconex transferred 12.4 per cent of the charter capital of Vina-Sanwa Co., Ltd. to Sanwa Holdings. After the VND24.37 billion ($1.06 million) transaction on June 14, Vina-Sanwa is no longer a joint venture of Vinaconex.

On May 10, Vinaconex also sold its entire interest of 765,000 shares at Danang Construction JSC.

According to financial statements for the first quarter of 2021, Vinaconex reached a revenue of VND952 billion ($41.4 million), down 4.8 per cent over the same period last year, with profit of VND345.3 billion ($15 million), 5.4 times as much as in the same period last year.

As of March 31, the total consolidated assets of Vinaconex reached VND20.497 trillion ($934.27 million), up 9.6 per cent compared to the beginning of the year. Cash and term deposits reached VND2.588 trillion ($112.5 million), accounting for 12 per cent of total assets.

At the 2021 annual general meeting of shareholders, Vinaconex approved targets of VND12.23 trillion ($531.74 million) in total consolidated revenue, VND1 trillion ($43.5 million) in after-tax profit, up 41 and 40 per cent, respectively, compared to the results from 2020.

By Trúc Anh

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