Vingroup (VIC) shakes up urban development firm
Vingroup (VIC) shakes up urban development firm
Vingroup Joint Stock Company (Vingroup) has split its property arm into two in an attempt to restructure its business operation.
Vingroup decided to withdraw VND500 billion worth of capital from Sai Dong Urban Development and Investment Joint Stock Company to form a new company.
The new firm is Sado Trading Joint Stock Company and Vingroup will hold 98 per cent of the new company’s capital.
After the deal, the charter capital at Sai Dong Urban Development and Investment JSC will be scaled down to VND700 billion (US$30.2 million).
Sado Trading JSC operates in the consultancy sector, excluding activities in legal advisory, finance, accounting, auditing, taxation and securities.
Main activities include merchandise retail, brokerage and auction, stationery, advertising, eateries, trade promotion, and entertainment.
At the end of 2019, Vingroup merged Sai Dong Urban Development and Investment JSC at a 1.1:1 ratio, meaning each of the latter’s shares was worth 1.1 Vingroup shares.
At the time of the acquisition on December 11, 2019, shares of Sai Dong Urban Development and Investment (UPCoM: SDI) rose to VND115,000 ($4.96) apiece from VND90,000 apiece.
Meanwhile, Vingroup shares (HoSE: VIC) fell to VND86,100 apiece from VND120,000 apiece.
Vingroup has been holding 100 per cent of Sai Dong Urban Development and Investment JSC following the merger deal.
After the deal, SDI shares were delisted from the Unlisted Public Company Market on December 26. Its shares finished the last trading day at VND115,000 apiece.
Sai Dong Urban Development and Investment JSC was founded in 2009, making investment in some of the major projects such as Vinhomes Riverside, Vinhomes Gardenia, Mai Dich Park, Vinhomes Skylake and Cau Giay Park.
