Thaiholdings to acquire its parent company
Thaiholdings to acquire its parent company
Thaiholdings JSC will increase its charter capital to VND3.5 trillion ($152.17 million) and expects to acquire its once-parent company Thaigroup either in August or September.
Thaiholdings Tower is an assest of the company
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Notably, the Board of Directors of Thaiholdings approved putting 296 million shares on sale to increase the charter capital from VND539 billion ($23.43 million) to VND3.5 trillion ($152.17 million).
With the initial unit price of VND10,000, the group expects proceeds at VND2.96 trillion ($128.7 million). The money from the sale will be used to buy a 59 per cent stake in Thaigroup, at the offered price of VND20,000 per share. The remaining VND11 billion ($478,260) will be added to the company's working capital.
Previously in June,the Board of Directors of Thaiholdings approved spending VND3.3 trillion ($143.48 million) to buy a 66 per cent stake in Thaigroup. Thaigroup used to be the parent company of Thaiholdings with 74 per cent stake before divesting it entirely in April 2019.
Previously known as Xuan Thanh Group, Thaigroup was established in 2007. At the moment, the group's charter capital is VND2.5 trillion ($108.7 million) and operates in the cement sector with brands like Xuan Thanh, Kaito Cement, and Thaicement.
Since May, the group diversified into trading imported coal, a part of which will be used at its cement manufacturing factoryin the northern province of Ha Nam. The group expects to acquire VND900 billion ($39.13 million) in revenue from this new trading segment.
In addition, the group targets to earn VND2.1 trillion ($91.3 million) in net revenue and VND2.8 trillion ($121.74 million) from transfering assets. It expects after-tax profit to reach VND800 billion ($34.78 million).
Thaiholdings was founded in March 2011 under the name Kinh Thanh Investment and Development JSC. The company changed its name to Thaiholdings JSC in September 2016. Its main business lines are goods transportation by specialised vehicles as well as trading in materials and equipment for installation in construction, with VND389 billion ($16.9 million) in total registered capital.
One highlight in Thaiholdings’ 2020 business plan is the company’s intention to continue engaging in M&A deals and later incorporate member companies into its financial report.
On June 19, Thaiholdings officially listed 53.9 millions shares on the Hanoi Stock Exchange (HNX) with the initial share price of VND10,000.
