Vincom Retail JSC (HSX: VRE) has announced the merger of two wholly-owned subsidiaries in order to restructure the internal ownership of subsidiaries.
|Vincom Retail to merge two real estate subsidiaries with the total capital of over $264 million |
Specifically, Northern Vincom Retail LLC (VCRMB) will merge with Ha Thanh Real Estate Development and Investment Co., Ltd. (Ha Thanh).
After the merger, the charter capital of VCRMB is expected to increase to VND6.16 trillion ($267.83 million). VCRMB will inherit all assets, legal rights, and interests, as well as unpaid debts and other obligations of Ha Thanh.
On June 23, VRE will hold its 2021 annual shareholders' general meeting. According to the published documents, the company's Board of Directors will present to shareholders a plan for 2021 with net revenue of about VND9 trillion ($391.3 million), after-tax profit of about VND2.5 trillion ($108.7 million), increases of 8 and 5 per cent compared to 2020.
If the plan is approved, VRE will have completed 24.7 per cent of its revenue target for the first quarter and 31.2 per cent of its net after-tax profit target for 2021.
According to its latest financial statement, as of March 31, the company currently owns four subsidiaries. In addition to VCRMB and Ha Thanh, VRE also owns all shares in Vincom Retail Southern Co., Ltd., and holds 97 per cent of Suoi Hoa Urban Development and Investment JSC.
Regarding its first-quarter business results, VRE recorded a consolidated revenue of VND2.2 trillion ($95.65 million), up 32 per cent over the same period in 2020. Income from leasing property contributed VND1.7 trillion ($73.9 million) of this, up 18.2 per cent. Revenue from real estate transfer reached VND452 billion ($19.65 million), up 124.9 per cent, mainly from the handover of three large commercial townhouse projects, namely My Tho, Bac Lieu, and Uong Bi.
VRE stocks closed the June 18 session at VND32,500 ($1.41), down 1 per cent against the previous day.