Vinaconex to gain $35.8 million from VCP shares

Vinaconex to gain $35.8 million from VCP shares

As the shares, with sticker VCP, closed at VND52,000 each on February 18 on the official unlisted market UpCOM, Vinaconex-owned shares, or 28 per cent of the stake, was worth VND832 billion (US$35.8 million).

According to Vinaconex's financial statements for Q4 2019, it paid more than VND137 billion for the shares.

Vinaconex said the transactions could be made via order matching or put-through between February 19 and March 18.

The divestment announcement was made last Friday when VCP shareholders agreed to allow its second largest shareholder PVI Opportunity Investment Fund to increase ownership to more than 25 per cent without a public tender procedure.

The firm also decided to list its shares on either the Ha Noi Stock Exchange (HNX) or the HCM City Stock Exchange (HoSE) in Q2 or Q3 this year.

VCP’s shareholder structure has changed since November 2019 when PVI Opportunity Fund bought shares of VCP with a volume of 13.9 million units, increasing its ownership to 24.4 per cent.

Thong Nhat Asia Investment, on the other hand, sold 3.9 million shares and is no longer a major shareholder since February 10. Recently, VSD Investment also registered to withdraw 6.2 million shares, equivalent to 10.9 per cent of capital, from February 17 to March 17.

Last year, VCP reported VND492 billion and VND232 billion in revenue and profit after tax, down 4 per cent and 2 per cent over 2018, respectively.

The firm said its business activities faced difficulties due to continued difficulties in hydrological conditions due to low water flow.

Established in 2004 as Cua Dat Hydropower Joint Stock Company in Thanh Hoa Province, the firm then also operated some hydropower projects in Bai Thuong and Xuan Minh in the same province.

Last November, VCP shares increased by 70 per cent to reach VND65,000 each. Today, the shares lost 6.3 per cent to close at VND 52,000 on UpCOM.

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