Tam’s firms divesting from banking, debt remains
Tam’s firms divesting from banking, debt remains
Kinh Bac Urban Development Corp and Saigon Telecommunications and Technologies Corp have been divesting from the banking sector, a non-core business of the two firms operating in infrastructure development and telecoms, according to their recently released financial reports.
The two listed firms, coded KBC and SGT on the Ho Chi Minh Stock Exchange (HoSE), have offloaded about 26.5 million shares and 18.81 million shares of banks in Q3/2012, respectively.
Dang Thanh Tam has been the board chairman and CEO of both firms from the start in 2007.
Tam is the brother of former NA delegate Dang Thi Hoang Yen, who is the chairwoman of Tan Tao Investment Industry Corp (ITA), and a member of the firm's board of directors.
Tam was ranked the richest man in Vietnam in 2007, and the third wealthiest in 2008, 2009 and 2010 based on the value of shares he owned after ITA and KBC shares were listed on HoSE in 2007. The total value of the stocks he owned dropped from over VND6 trillion to around VND3.2 trillion in 2008.
However, the two firms still owed Nam Viet Commercial Joint Stock Bank (Navibank) and Western Commercial Joint Stock Bank (WesternBank) some VND3 trillion ($144 million) in total, according to their Q3/2012 financial statements.
In the first nine months of 2012, the respective losses of KBC and SGT were at VND233 billion and VND228 billion. In particular, the accumulated losses of SGT so far have amounted to VND308 billion, about half of the charter capital of the company.
It is known that at Navibank, coded NVB on Hanoi Stock Exchange (HNX), Dang Thanh Tam is currently holding the post of a permanent member of the board of directors.
KBC’s total loans and bond values currently held by WesternBank and Navibank are at VND2.4 trillion.
As of September 30, short-term loans of KBC in Navibank fell nearly VND549 billion to VND118 billion.
Also in Navibank, KBC now owed long-term loans worth VND116 billion and VND300 billion bonds secured by land use rights of KBC’s 6 land plots worth some VND606 billion in total.
For WesternBank, KBC's long-term debt balance at the bank was VND320 billion. At the same time, KBC also released VND1.5 trillion bonds (KBC Bond) which were mortgaged from deposits for WesternBank.
Thus, out of the total VND3 trillion KBC bonds issued, WesternBank and NVB accounted for VND1.8 trillion of bonds.
On the other hand, SGT released VND300 billion in unsecured bonds for WesternBank.
SGT have long-term debts of 6.2 billion for WesternBank. In particular, SGT has issued for WesternBank 300 billion in bonds secured by assets with a term of five years to raise funds for an industrial complex south of the Red River.
SGT has a matured long-term loan of nearly VND6.2 billion and maturing long-term loans worth VND136 billion in WesternBank.
SGT’s total debt at Navibank was at VND136 billion.
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