In the recently added Extraordinary Shareholders’ Meeting document, Pomina announced that it will establish a new legal entity called Pomina Phu My Joint Stock Company. The purpose is to synchronize the steelmaking and rolling processes to optimize production capacity and strengthen the financial structure.
In the new company, Pomina Steel will contribute with non-cash assets including land, buildings, and equipment. Meanwhile, strategic investors will contribute with cash.
Source: Pomina
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Pomina stated that the funds recovered from the new legal entity will be used to repay short-term and long-term debts to banks, suppliers, and supplement working capital.
Through the establishment of the new legal entity, the strategic shareholder group will solely be responsible for Pomina Phu My Joint Stock Company, while not bearing any responsibility related to Pomina Steel.
The identity of the strategic investor and the contribution ratio are currently not disclosed. These significant information will be announced at the extraordinary meeting scheduled on March 1, 2024.
According to Pomina, the strong restructuring process, particularly with the participation of strategic investors, is a milestone marking an important turning point for the company. This strategic cooperation will provide the necessary funds for POM to restart the steelmaking furnace.
It is expected that Pomina will resume operation of the steelmaking furnace in Q4 2024 after a period of inactivity, to anticipate the recovery of real estate projects forecasted to be strong in the last months of the year.
Additionally, Pomina will propose a capital increase plan for the investment project of the steelmaking furnace at Pomina 3 branch, from 4,975 billion VND (as of 2020) to nearly 5,880 billion VND, an increase of 904 billion VND. This is a procedural step because according to the audit results signed on March 2, 2023, the actual investment value of this project has reached 5,880 billion VND.
