VEAM to pay $214.9 million dividend in cash

The Viet Nam Engine and Agricultural Machinery Corporation (VEAM) announced it would pay a cash dividend of more than VND5 trillion (US$214.9 million) on January 21.

 

According to the firm’s announcement, VEAM will pay the cash dividends for 2018 at the rate of 38.84 per cent of charter capital. With current prices, each share will get VND3,884.

With nearly 1.33 billion shares, VEAM will spend VND5.161 trillion on the dividends.

As the largest share holder of VEAM, with an 88.5 per cent stake, the Ministry of Industry and Trade will pocket VND4.56 trillion.

According to the firm, its net profit reached more than VND5.1 trillion in the first nine months, an increase of 6 per cent year-on-year thanks to the dividends collected from its joint ventures of Honda (30 per cent stake), Toyota (25 per cent stake) and Ford (20 per cent stake).

It is the second cash dividend payment of the firm since it started trading on the Unlisted Public Company Market (UPCoM) with code VEA in 2018 when it paid VND490 billion for the dividend in 2017.

VEAM, established in 1980, mainly produces agricultural equipment and machines, tractors, trucks and buses, as well as motorbikes and spare parts.

Since its UPCoM debut on July 2, 2018, VEAM shares gained 152 per cent to a peak of VND64,500 (US$2.77) per share on July 26. Then the shares dropped more than 23 per cent. As of December 16, 2019, each VEA share closed at VND49,800.

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