Yeah1 wants to transfer 51% stake in Giga1

2 min read

In addition to wanting to sell 51% of the shares currently owned in Giga1, Yeah1 also plans to shake hands with another partner to develop the commercial business here.

Yeah1’s headquarters is at 191 Nam Ky Khoi Nghia, Ward 7, District 3, Ho Chi Minh City. (Artwork: Minh Hang).

Yeah1 Group Joint Stock Company (Code: YEG)  has just announced a resolution on a plan to cooperate with a partner to jointly develop the commercial business at Giga1 Trading Technology Joint Stock Company. The identity of the partner has not been disclosed.

At the same time, the Board of Directors also approved the transfer of 51% of Yeah1’s capital at Giga1 with the transfer price not lower than the book value in the latest financial statement. If successful, Yeah1’s ownership rate in Giga1 will be reduced from 99.99% to 48.99%.

According to research, in October 2020, Yeah 1 increased the charter capital of Giga1 from 20 billion VND to 360 billion VND. At that time, Yeah 1 planned to establish Netlink Online Media One Member Limited Liability Company, Giga1 contributed 100% of capital. The group said that raising capital and establishing a new company is part of Yeah1’s roadmap to structure and develop the Gigal1 multi-channel commerce segment.

By the end of January 2021, Yeah1’s Board of Directors has agreed for Giga1 to contribute capital with partners to establish Gigagoods JSC to distribute food, beverage, personal care products… Gigagoods’ initial charter capital is expected is 1.8 billion dong, of which Giga1’s capital contribution rate is 51%, equivalent to 918 million dong.

Yeah1 at that time also approved the policy to allow Giga1 to contribute capital with partners to establish Gigawin Distribution JSC to distribute electronic and refrigeration products… The initial charter capital was expected to be 1.8 billion VND, of which the rate Giga1’s capital contribution rate is 59%, equivalent to more than 1 billion VND.

Recently, Yeah1 continuously divested and transferred subsidiaries for restructuring. This move took place after the incident with Youtube from March 2019 and the business continuously reported losses.

In the market, the share price of Yeah1 also dropped without stopping. Closing session 1/7, YEG stock paused at 20,600 dong/share, losing 56% of its value compared to the first day of 2021.

YEG price movement from 2020 to present. (Source: TradingView).

Source: vietnambiz.vn – Translated by fintel.vn