IDICO Corporation (HNX: IDC) recently approved the content of the contract to transfer shares of Dak Mi Hydropower Joint Stock Company to Bitexco Group Co., Ltd. IDICO said that this is a transaction with the relevant person, Mr. Vu Quang Bao, a member of the Board of Directors of IDICO and the legal representative of Bitexco.
The number of shares transferred is 26 million units, equivalent to 26% of the charter capital of Dak Mi Hydropower Plant. After the transfer, IDICO will no longer be a shareholder of this hydropower company.
It is known that Dak Mi Hydroelectricity has a charter capital of 1,000 billion VND. The main business is the production, transmission and distribution of electricity in the Dak Mi 4A,B,C hydroelectric plant cluster. Thus, the transfer value of 26% capital of this company at par value is 260 billion VND.
By the end of the first quarter, IDICO had a total of 12 subsidiaries and 5 affiliated companies, operating in such fields as investment, construction, and industrial park infrastructure business; construction, electricity trading; traffic, urban technical infrastructure; Building materials business; hydroelectric.
In a related development, Bitexco Group recently registered to sell all 67.5 million IDC shares from May 28 to June 25. The transaction is expected to be carried out by agreement and order matching method, for the purpose of portfolio structure.
Bitexco is one of two strategic investors of IDICO that has been restricted from transferring for 10 years since the establishment of a joint stock company on March 1, 2018, with the amount of 67.5 million shares.
Up to now, Bitexco has only held this number of IDC shares for more than 3 years, but IDICO’s 2021 AGM has approved the addition of amendments to Clause 4, Article 12 of IDICO’s Charter: Removal of regulations minimum transfer restriction period of 10 years for shares of strategic shareholders.
It can be seen that the transfer of 26 million shares of Dak Mi Hydroelectricity to Bitexco took place almost at the same time as this major shareholder divested from IDICO.
Regarding the business situation of IDICO, at the end of the first quarter, net revenue reached VND 1,046 billion, a difference of less than 1% compared to the same period in 2020. The company’s profit after tax earned more than VND 80 billion, growing in 9% compared to the first quarter of 2020.
IDC shares opened on June 16 at 39,600 VND/share. Market capitalization is estimated at more than 11,000 billion VND.
Source: vietnamfinance.vn – Translated by fintel.vn