Song Da Corp to divest from hydroelectricity companies
Song Da Corp to divest from hydroelectricity companies
Construction giant Song Da Corporation announced recently that it would be selling its stakes in several hydroelectricity companies in October.
Song Da, which holds a stake of 0.92 per cent in Ho Bon Hydroelectricity Joint Stock Company, plans to sell its 216,000 shares at an initial price of VND10,400 (US$0.45) per share. The auction will be held on October 3 at the Ha Noi Stock Exchange. Ho Bon has a charter capital of VND235.4 billion.
On the same day, Song Da will also put on auction its entire 558,000 shares, or 1.3 per cent stake, in Nam Muc Hydroelectricity at an initial price of VND10,300 per share.
Founded in 2007, Nam Muc was connected to the national grid in 2015, and its revenue has jumped from VND98 billion in 2015 to VND155.5 billion in 2017. However, the company reported a loss of VND5.4 billion in 2016 and is forecast to incur a loss of VND4.25 billion this year.
Previously, Song Da was planning to sell 16.27 million shares of Huong Son Hydroelectricity, but the divestment process has not been completed.
The corporation is also divesting from the Southern Power Investment and Development Joint Stock Company (SEB). Currently, it owns 1.21 million SEB shares, or 6.06 per cent of the company’s charter capital.
In July, the Prime Minister approved the equitisation plan for Song Da Corporation, allowing it to sell parts of State-owned capital and issue shares to increase its charter capital to VND4.5 trillion.
Accordingly, Song Da will launch its initial public offering (IPO) of 450 million shares at VND10,000 per share, with the state retaining 229.5 million shares, or 51 per cent of the charter capital, until the end of 2019. The State capital will be reduced to below 50 per cent of the charter capital in 2020.
