Viglacera and Gelex go to the same house

1 min read

Gelex currently owns more than 50% of charter capital and becomes the parent company of Viglacera.

Viglacera và Gelex về chung một nhà - Ảnh 1.
Gelex headquarters in Hanoi. (Photo: Song Ngoc).

Vietnam Electrical Equipment Corporation (Gelex – Ticker: GEX) announced to buy 18.57 million VGC shares from March 8 to April 6, 2021. Previously, Gelex registered to buy 22.5 million shares of VGC. The reason for not buying all the numbers as planned, according to Gelex, was “could not find a seller”.

Estimated at the price of 35,000 dong / share, Gelex had to spend about 650 billion dong to complete this transaction.

Currently, the group of Gelex shareholders and subsidiaries have increased their ownership rate in Viglacera Corporation to 50.21%, equivalent to 225.1 million VGC units. The total number of VGC shares that Gelex is holding has a market capitalization of nearly 7,900 billion VND.

Mr. Nguyen Van Tuan – Gelex’s CEO is currently the Chairman of Viglacera’s Board of Directors.

With Viglacera becoming a subsidiary of Gelex, from Q2 / 2021 onwards, Viglacera’s financial statements will be consolidated into Gelex’s financial statements, including revenue, profits, assets, debts, equity.

In 2020, Viglacera recorded revenue of 9,455 billion VND, profit after tax of 667 billion VND. Gelex reported revenue of 18,086 billion, profit after tax of 980 billion.

In 2021, Viglacera sets a consolidated revenue target of 12,000 billion VND, profit after tax of 800 billion VND. For its part, Gelex plans to do business in 2021 after the merger of Viglacera is 33,000 billion dong in revenue and 1,500 billion dong in pre-tax profit.

Source: vietnambiz.vn – Translated by fintel.vn