Vietnam’s corporate sector saw developments in the ownership structure of both the government-owned and the private firms. While the Southern Airport Services Company could not bring its shares on the stock market due to a tight shareholder structure, Maritime Bank unveiled a share swap plan to take over Mekong Development Bank.
Duc Long Gia Lai, a private-owned company from the central highlands of Vietnam, sold its stakes in two smaller firms to its partner, Bamboo Capital Group.
Shareholder structure prevents Sasco from listing
The Southern Airport Services Company (Sasco) has been denied the facility of trading 131.5 million shares on the unlisted public company market (UPCoM), due to the densely structured ownership.
Having a charter capital of VND1.315 trillion ($61.16 million), 96.7 per cent of the company’s capital is owned by five organisational investors. The Airports Corporation of Vietnam is its largest shareholder by 51 per cent.
Meanwhile, Hoan Loc Viet Trade and Service JSC and Imex Pan Pacific (IPP Group) holds 22.1 per cent and 16 per cent, respectively. The other two, Duy Anh Fashion and Comestic and Au Chau Fashion and Comestic, own a combined stake of 7.6 per cent, and are affiliate companies of the IPP Group.
IPP Group and related companies became Sasco’s strategic partners, after the southern airport service firm conducted its IPO in September last year.
In 2014, Sasco, as a parent company, reached a revenue of VND2 trillion ($93 million), most of which came from sales from duty-free shopping and the Sasco Tan Son Nhat trade centre.
The company’s profit after tax was VND112 billion ($5.2 million), rising 21 per cent year-on-year.
Sasco and Ca Mau Fertiliser are the first companies to submit for trading stocks after equitisation.
Also read: SASCO will list shares in 2015
Banks swap shares for merger
Accordingly, Maritime Bank will issue an additional amount of 375 million shares to swap for shares of the target bank at one to one (1:1) ratio.
Post merger, the joint entity will be known as Maritime Bank, and it will have a much larger charter capital of VND11.75 trillion, up from the current capital of VND8 trillion.
Duc Long Gia Lai sells two companies to Bamboo Capital
Particularly, the listed company gave up a 91.71 per cent stake in Duc Long Gia Lai Wood Processing JSC at VND13,000 per share, while transferring 19.5 per cent in Tay Nguyen Mineral and Metallurgy JSC at the same price to the fund.
The total proceeds reached VND101.88 billion ($4.7 million).
Duc Long Gia Lai has a charter capital of nearly VND1.5 trillion ($69.77 million), earning a profit after tax of VND52.8 billion ($2.46 million) last year, and increase of up to 25 times, compared to the profit in the year 2013.
It is best known for wooden furniture manufacturing, and is also active in sectors like real estate, agriculture, energy and infrastructure investment.
Meanwhile, Bamboo Capital has been the consulting agency for investment deals of the US-based fund Global Emerging Markets (GEM) in Duc Long Gia Lai and its peer Hoang Anh Gia Lai last year. The Vietnamese financial service company is also planning to list its shares on the Ho Chi Minh City Stock Exchange.
Also read: GEM invests $80m in Hoang Anh Gia Lai Group