SJE Energy acquires 65.1% stake in HPD for a fresh start

This is an off-market transaction, by Sông Đà 11 Corporation (HNX: SJE) contributing 65.1% of capital HPD to establish SJE Energy.

SJE Energy Co., Ltd. is a subsidiary of Sông Đà 11 Corporation. SJE Energy was established based on the capital restructuring of Sông Đà 11.

According to the resolution of the Board of Directors of Sông Đà 11, SJE Energy has a charter capital of 500 billion VND, through capital contribution of only nearly 260 million VND from the parent company Sông Đà 11. The remaining 499.7 billion VND (accounting for 99.95% of the charter capital) is contributed by Sông Đà 11 through other assets.

Specifically, the contributed assets are the book value of shares (registered ownership assets) in the energy companies owned by Sông Đà 11 as of June 30, 2023.

Sông Đà 11 stated that Thủy điện To Buông JSC, Thủy điện Đăk Đoa JSC (HPD), Thủy điện Bát Đại Sơn JSC, Thủy điện ĐăkGlei JSC, and Solar Power Investment JSC are its subsidiaries, so the transfer of ownership rights from these subsidiaries to SJE Energy (owned by Sông Đà 11) is not a public purchase.

After establishment, SJE Energy will manage and operate all business activities in the energy sector at the energy companies in which Sông Đà 11 invested, as well as being flexible in capital mobilization and seeking new development projects and business cooperation in the energy sector.

In 2023, Sông Đà 11’s net revenue decreased by over 23% compared to the previous year, reaching over 696 billion VND. However, the company achieved nearly 76 billion VND in net profit, a 42% increase compared to the previous year, thanks to a 64% decrease in enterprise management costs, totaling over 31 billion VND. The reason is that the company was able to recoup nearly 15 billion VND of difficult-to-collect accounts receivable provisions.

Source: VietstockFinance

With the above results, SJE achieved only 87% of the revenue target but exceeded the 35% profit target.

Khang Di