DLG takes over Mass Noble Investments Ltd
DLG takes over Mass Noble Investments Ltd
Furniture dealer Duc Long Gia Lai Group (DLG) announced on May 26 that it had officially taken over the electronic component producer Mass Noble Investments Limited through a share swap.
DLG will issue more than 19.93 million shares in exchange for the shares of Mass Noble shareholders – Ansen Holdco Limited, Hampora Investments Limited and Valtec Capital Corporation – who collectively own 97.73 per cent of the foreign producer.
Under the swap agreement, each DLG share will be exchanged for 1.4 Mass Noble shares at a rate of VND12,500 (US$0.58) per share.
Mass Noble is the production unit of the Hong Kong-headquartered electronic components company Ansen Electronics. It has a five-storey plant, spanning 40,000sq.m, in Guangdong province, mainland China. Manufacturing hi-tech telecommunications equipment, LED lighting products and LCD screens, the factory has achieved an annual turnover of $75 million for Mass Noble. Its major consumption markets are Europe, the United States, Japan, Korea and China.
Mass Noble possesses registered capital of almost $14.6 million. It posted a profit of some $1.19 million in the last fiscal year and plans to achieve a profit of $6.4 million by 2017.
Established as a furniture dealer in the central highland province of Gia Lai, DLG now holds charter capital of VND1.5 trillion ($69.7 million) and focuses on its core business of agriculture, energy, infrastructure and electronic components.
This year, DLG plans to earn net revenue of VND2.5 trillion ($114.6 million) and a profit of VND265 billion ($12.15 million), including VND1.2 trillion ($55 million) from Mass Noble.
Through the swap, the group would not only take over Ansen Electronics but would also record a surplus of VND60 billion ($2.75 million).
The group said when it achieved stable revenue from its overseas operations, it would build more plants in HCM City, Da Nang and Binh Duong to serve the local and export demand.
On May 27, DLG shares closed at a value of VND8,300 ($0.25) each on the HCM City Stock Exchange.
