JC&C to pour $170 million into THACO
JC&C to pour $170 million into THACO
After Vinamilk, Jardine Cycle & Carriage (JC&C) is planning to splash out on Truong Hai Auto Corporation (THACO), helping it raise its charter capital to VND16.95 trillion ($737 million).
THACO's board of management has just approved to collect shareholders’ opinion on issuing private shares.
Accordingly, THACO will ask for approval to issue more than 30.3 million shares for the strategic shareholder Jardine Cycle & Carriage (JC&C), a Singaporean company represented by Cheah Kim Teck. The offering price is estimated at VND128,500 ($5.59) per share. The total mobilised capital will be more than VND3.894 trillion ($169.304 million).
After the issuance, JC&C’s ownership in THACO will rose to 26.57 per cent (from 25.23 per cent). The new stock will not be transferable for one year after the offering.
Before this deal, at the end of 2017, JC&C spent more than $400 million to buy around 49 million shares of Vietnam Dairy Products JSC (Vinamilk) (code: VNM). The total capital JC&C poured into Vinamilk has been estimated at $1.017 billion for 129.1 million shares.
JC&C is now the third largest shareholder of Vinamilk (following State Capital and Investment Corporation – SCIC and F&N Dairy Investment owned by Thai billionaire Charoen Sirivadhanabhakdi). Moreover, during last year, JC&C repeatedly registered to buy dozens of millions of additional VNM shares.
The new shares of THACO are expected to be issued in 2019, right after the State Securities Commission (SSC) announces receiving the full documentation for the issuance.
THACO is planning to spend this amount to develop production lines and expand business scale, including infrastructure, industrial zones, and urban and agricultural investment.
After the issuance of these private shares, THACO will amend its charter and raise its charter capital to approximately VND16.95 trillion ($737 million).
