Gelex raised the tender offer price for Viglacera shares to 21,500 VND / share

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The new bid price announced by Gelex (21,500 VND / share) is 21% higher than the previous price (17,700 VND / share) and only lower than the closing price of VGC 9/11/2020 (21,700). VND / share) nearly 1%.

Gelex said that this increase in the public bid price applies to all VGC shareholders, including shareholders registered to sell VGC shares to Gelex.

Thus, at the price of 21,500 dong / share, Gelex will have to spend more than 2,042 billion dong to buy all 95 million VGC shares, much more than the old price of 360 billion dong.

It is known that Gelex currently owns 24.96% of the total number of VGC shares outstanding. In which, Gelex directly holds 24.8 million VGC shares, equivalent to 5.54%. Gelex Electrical Equipment Joint Stock Company (owned by Gelex 99,998% of charter capital) holds 87.1 million VGC shares, equivalent to 19.43%.

If the tender offer is successful, Gelex will increase its ownership in Viglacera from 24.96% to 46.15%.

At the AGM held in June 2020, Gelex’s management had a plan to buy controlling Viglacera and expected a part of the implementation capital would come from the withdrawal of the logistics segment.

With the orientation of investing in industrial zones, Gelex side said that Viglacera is a prestigious brand in real estate project development and management. The cooperation with Viglacera will help the two sides take advantage of each other’s strengths to invest and develop industrial zones, towards industrial parks near ports.

Regarding the business situation, in the first 6 months of the year, Gelex recorded revenue and pre-tax profit of VND 7,312 billion and VND 529 billion, respectively, up 3% and down 6% over the same period in 2019.

If the merger of Viglacera is successful, Gelex’s 2020 target revenue and pre-tax profit is expected to reach VND 19,600 billion and VND 975 billion, respectively. Without merging Viglacera, Gelex expects revenue and pre-tax profit to be 17,500 billion and 735 billion.

Source: vietnamfinance.vn – Translated by fintel.vn