Red Capital Announces Complete Divestment from Viglacera

Red Capital Investment Fund Management Corporation (Red Capital) has announced the complete divestment of over 5 million shares of VGC, equivalent to 1.12% of Viglacera’s charter capital. The transaction was conducted through negotiated agreement and matched orders during the session on September 9.

It is known that Ms. Đỗ Thị Phương Lan, a member of Viglacera’s Board of Directors, owns 24.96% of Red Capital’s charter capital.

Conversely, Vietnam Electric Equipment Corporation (Gelex) has made a bid to acquire 95 million VGC shares and has recently raised the bid price from 17,000 VND/share to 21,500 VND/share, equivalent to the market price of VGC shares trading on the market.

This action is part of Gelex’s plan to acquire Viglacera. At Gelex’s 2020 annual general meeting of shareholders, the company’s shareholders approved a plan to acquire and own a controlling 51% stake in Viglacera.

Currently, the Ministry of Construction is the largest shareholder, holding 53.97% of Viglacera’s capital. Additionally, Gelex and its subsidiaries own nearly 112 million shares, corresponding to 24.96% of the total circulating VGC shares.

In June, the Ministry of Construction proposed to divest its entire stake in Viglacera this year; however, the biggest challenge remains determining a reasonable price.

Regarding business performance, in the first half of the year, Viglacera achieved net revenue of 4.84 trillion VND, an increase of only 4 billion VND compared to the same period in 2019. After-tax profit decreased by 16% to 342 billion VND.

Source: Vietnambiz