SCIC to divest all capital at Traenco (TEC)
SCIC to divest all capital at Traenco (TEC)
The State Capital Investment Corporation (SCIC) announced Tuesday that it was about to divest all stakes in Traenco Joint Stock Company (TEC).SCIC will auction more than 321,600 shares in TEC, equivalent to 19.4 per cent of the company’s capital, with the starting price of VND10,000 (US$0.43) per share.
Interested investors must register to buy the whole lot.
Registration time is from December 4 to December 23, the auction is on December 24.
Compared with the current market price of VND7,000, the offered starting price by SCIC is 42 per cent higher. If the divestment is successful, SCIC will earn more than VND3.2 billion.
Traenco Joint Stock Company, formerly a State-owned enterprise named Construction and Trade Company under the management of the Ministry of Transport, was equitised in 2005.
On April 24, 2017, the company was officially listed on UPCOM under the code TEC with the reference price of VND7,000 per share, having charter capital of VND16.6 billion.
The major shareholders of TEC include SCIC, owning 19.4 per cent of capital, Chairman Bui Hong Quan, holding 17.2 per cent, two members of the Board of Directors who are Nguyen Tien Hung, holding 15 per cent and Nguyen Huu Diem, with 8.5 per cent.
TEC operates mainly in labour export, construction and trading of construction materials. In recent years, the labour export segment has contributed the largest proportion of more than 70 per cent of total revenue.
In 2020, due to the impact of COVID-19, labour export activities are significantly affected, thereby directly hurting the operation of the company.
