Failed Divestment: REE Subsidiary Unable to Withdraw from Pha Lai Thermal Power

REE Energy JSC (a subsidiary of REE Corporation, REE) has reported that it was unable to sell any of the 2 million PPC shares it had registered to offload in Phả Lại Thermal Power JSC (PPC on HoSE). The company cited unfavorable market conditions as the reason for not proceeding with the share sale.

With the failed divestment, REE Energy still holds 66.49 million shares, representing a 20.74% stake in Phả Lại Thermal Power.

It is worth noting that REE Energy has been offloading PPC shares to reduce its ownership. From January 19 to February 26, the company sold 665,300 PPC shares, followed by another 1,900 shares from March 4 to April 1. From April 12 to May 10, they sold an additional 2 million PPC shares, and from May 21 to June 4, they offloaded 3 million more. Finally, from June 12 to July 10, they sold an additional 3.26 million PPC shares.

As a result of these transactions, REE Energy’s ownership in Phả Lại Thermal Power has decreased from 23.5% to 20.74% between January 19 and August 14.

In terms of business performance, Phả Lại Thermal Power recorded a 65% year-on-year increase in revenue to VND 4,465 billion for the first half of 2024. Gross profit also rose by 87% to VND 223.13 billion over the same period.

During this period, financial revenue decreased by 21% to VND 114 billion, while management expenses increased by 37% to VND 64 billion. Consequently, the company posted a post-tax profit of VND 251 billion, a 25% increase compared to the previous year.

For the full year 2024, PPC has set a target of VND 8,755.6 billion in revenue, a 39.4% increase from the previous year, and VND 427.25 billion in pre-tax profit, an 11.7% rise from 2023. With a pre-tax profit of VND 271.78 billion in the first half of 2024, the company has achieved 63.6% of its annual plan.