The Vietnamese company will issue over 19.9 million shares in exchange for the shares of Mass Noble shareholders – Ansen Holdco Limited, Hampora Investments Limited and Valtec Capital Corporation – who collectively own 97.73 per cent in the foreign producer.
One Duc Long Gia Lai share will be exchanged for 1.43 Mass Noble share at the swap price of VND12,500 ($0.58) per unit. Accordingly, the Ministry of Planning and Investment has approved the VND249 billion offshore investment certificate for Duc Long Gia Lai.
Mass Noble is the production unit of the Hong Kong-headquartered electronic component company Ansen Electronics. It has a five-storey plant, located in a 40,000 square metre area in Guangdong, mainland China, which manufactures hi-tech telecommunications equipments, LED lighting products and LCD screens. The factory reportedly brings an annual turnover of $75 million for Mass Noble, whose major consumption markets include Europe, the US, Japan, Korea and China.
Duc Long Gia Lai said that apart from gaining the control of the company, it will record a surplus of VND60 billion from the share issuance. Mass Noble’s sales and profit will be integrated to the group’s business results for the second quarter.
The central highland based company revealed further that it will build more plants locally (that may include Ho Chi Minh City, Da Nang and Binh Duong), once the revenue from the overseas operation becomes stable.
Duc Long Gia Lai has a charter capital of VND1.5 trillion ($69.7 million), and is active in the fields of furniture, forestry, civil engineering construction and bus transportation. Last year, its profit soared over 3,000 per cent from 2013, reaching the VND54.3 billion mark. The company targets to increase it by five times more in the current year.
“We are striving to be one of Vietnam’s leading multi-sector groups by 2020, focusing on the core business of agriculture, energy, infrastructure and electronic components,” it said in a statement.
Mass Noble has a registered capital of almost $14.6 million. It posted a profit of some $1.19 million last fiscal, and plans to reach a profit of $6.4 million by 2017.