Vietnamese conglomerate Duc Long Gia Lai seeks to divest from US electronic component producer
Vietnamese conglomerate Duc Long Gia Lai seeks to divest from US electronic component producer
Duc Long Gia Lai, based in Vietnam’s Central Highlands province of Gia Lai, has announced its plan to divest from U.S. electronic accessory producer Mass Noble Investments Limited (Mass Noble).
Duc Long Gia Lai used to determine that production of electronic accessories was its strategic business line. Photo: Duc Long Gia Lai |
After the divestment, Mass Noble will no longer be a subsidiary of Duc Long Gia Lai.
Duc Long Gia Lai said it had invested over VND249 billion (US$9.8 million) to hold 97.73 percent of Mass Noble’s stake.
The group's board of directors authorized its general director to hire a price appraisal company to determine the current value of Mass Noble and seek a partner to transfer its stake in the U.S. company.
In mid-2015, Duc Long Gia Lai made the headlines by acquiring a 97.73 percent holding in Mass Noble.
In particular, the group issued nearly 20 million shares in exchange for Mass Noble stakes at a rate of VND12,500 ($0.50) apiece.
Following the deal, Duc Long Gia Lai took control of Mass Noble and entered the electronic component production sector.
The group has five subsidiaries located in Dongguan and Shenzhen in mainland China, Hong Kong, South Korea, and the U.S..
Its net revenue topped VND1.1 trillion ($43.3 million) but it sustained an after-tax loss of some VND578 billion ($22.7 million) last year.
In the first quarter of this year, Duc Long Gia Lai reported its net revenue at more than VND266 billion ($10.5 million) and after-tax profit at VND35 billion ($1.4 million).
However, its accumulated loss reached VND2.6 trillion ($102.3 million) as of March 2024.
The group looks to generate VND1.4 trillion ($55 million) in revenue and VND120 billion ($4.7 million) in post-tax profits this year.
