VHG to delist if restructuring fails

VHG to delist if restructuring fails

Beleaguered Viet Han Investment and Production (VHG) would delist if its restructuring plan failed, according to the company's recent annual meeting.

The board of directors would assess the possibility of success of the restructure and, at the same time, choose a reasonable time to delist, if necessary, so the maximum benefits to shareholders would be assured.

The company has 25 million shares listed on the HCM City Stock Exchange.

Under the restructuring plan, VHG will probably be split, merged or establish new subsidiaries. It will have to transfer assets and shares in subsidiaries and associates to other entities.

The company will also settle and liquidate its projects, such as D'Evelyn Tower Da Nang, D'Evelyn Beach Quang Nam, Dong Giang Rubber Quang Nam, some mineral, recycled plastics and fertilisers projects.

Last year, it planned to established a VND100 billion (US$4.7 million) limited liability company to manage the rubber project. Previously in 2011, the company invested 65 per cent in a VND100 billion partnership in the D'Evelyn Beach Quang Nam.

Of the above projects, the most expensive was D'evelyn Tower Da Nang, which was expected to cost the company VND850 billion ($40.4 million). It was kicked off in 2010 and VHG has poured in VND108 billion ($5.1 million) so far.

Prior to the annual shareholder meeting, the company had said it hoped the transfer of its projects and assets would account for 50 per cent of this year's revenue.

VHG has targeted a revenue of just VND200 billion ($9.5 million) for 2013. It also expects losses would narrow to VND20 billion ($952,300) compared to VND36 billion ($1.7 million) last year. VHG shares closed yesterday at the ceiling price of VND4,000 ($0.19)

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