If the transaction is successful, this major shareholder will increase its ownership in ITA from over 73.1 million shares (7.79%) to nearly 111.1 million shares (11.84%).
On May 24, ITA‘s share price surged to its daily limit of 5,590 VND per share, with a large trading volume of nearly 12.7 million shares. However, compared to the beginning of the year, ITA‘s market price has decreased by more than 13%. Based on this price, Tan Dong Phuong is expected to spend over 212 billion VND to complete the deal.
| Price movement of ITA shares since the beginning of 2024 |
Regarding the relationship, Ms. Dang Thi Hoang Yen, Chairman of the Board of Directors, and Mr. Nguyen Thanh Phong, General Director of ITA, are also General Director and Deputy General Director of Tan Dong Phuong, respectively.
Currently, Ms. Yen owns more than 54.3 million ITA shares, or 5.79%, while Mr. Phong holds nearly 292,000 shares, or 0.03%.
In another development, in early May 2024, the Customs Branch for Investment Management under the Ho Chi Minh City Customs Department issued a decision to enforce administrative decisions on tax management by halting customs procedures for import and export goods of four enterprises. The reason given was that all four enterprises had overdue tax debts exceeding 90 days from the due date, with ITA‘s tax debt amounting to over 136 billion VND.
The enforcement decision is valid for a period of one year, from May 2, 2024, to May 1, 2025, or until the above-mentioned enterprises fully pay their tax debts to the state budget.
Net profit increased by 34% in Q1
In terms of business operations, in the first quarter of 2024, ITA achieved revenue of over 71 billion VND and a net profit of nearly 20 billion VND, increasing by 16% and 34%, respectively, compared to the same period last year.
 Source: VietstockFinance
|
As of March 31, 2023, ITA‘s total assets remained relatively unchanged from the beginning of the year, reaching over 12,142 billion VND. Of this, inventory accounted for more than 3,581 billion VND, or 29% of total assets, mainly concentrated in the E-City Tan Duc project with over 2,517 billion VND, Tan Duc Industrial Park project with 326 billion VND, and Tan Tao Industrial Park with nearly 465 billion VND, among others.
Source: ITA
|
On the other side of the balance sheet, ITA had over 1,820 billion VND in payables, an increase of 2% compared to the beginning of the year. Of this, financial borrowings accounted for more than 47 billion VND, a rise of 7%, and constituted only 3% of the company’s total debt.
Regarding the E-City Tan Duc project, ITA announced that the project has been approved for investment policy adjustment by the People’s Committee of Long An province on April 16, 2024 (the original investment certificate was granted on November 11, 2008).
|
According to the investment certificate dated November 11, 2008, the project for the construction of the Ecity Tan Duc urban area covers an area of over 348 hectares in Duc Hoa Ha and Huu Thanh communes, Duc Hoa district, Long An province. The total investment capital is over 1,623 billion VND. The implementation period of the project is 50 years, with the construction of technical infrastructure for the residential area scheduled from 2008 to 2012, and commercial operations set to begin in 2009. |
The reason for the adjustment, as communicated by the People’s Committee, is that ITA has completed compensation and site clearance for 845 out of 846 households, compensating for 351.3 hectares out of 356 hectares (98.68%). The company has been granted land use rights for an area of nearly 350.5 hectares, fulfilled its financial obligations related to land, and obtained land use certificates. Additionally, they have approved the detailed planning at a scale of 1/500, completed 75% of the infrastructure in Zone A, 42% in Zone B, and 55% in Zone C. They have also constructed 3 villas with an area of 500m2 in the Tai Loc area and 23 twin villas in the Hanh Phuc area (Zone C). Furthermore, they have completed and put into use 3 model villas with an area of 1,000m2, the Swan Lake, and a swimming pool (Zone B), as well as several facilities for the Tan Tao University, including the main building, the technical building, the Faculty of Medicine, the Canary Hall, and sports and entertainment venues, allowing the university to commence operations in 2011.
The delay in project implementation compared to the approved schedule is attributed to difficulties in site clearance, with an area of over 4.7 hectares belonging to Mr. Nguyen Van Song yet to be cleared due to disagreements over the compensation plan.
According to the adjusted decision, ITA has 12 months from the date of adjustment of the investment policy decision to complete compensation, site clearance, and land-related procedures, and to commence investment in technical infrastructure.
