The Board of Directors of Phat Dat Real Estate Development JSC (coded: PDR) has announced a resolution to temporarily halt the implementation of the plan to issue bonus shares to shareholders as approved by the 2024 Annual General Meeting of Shareholders in April this year.
Initially, Phat Dat planned to issue 131 million shares as a dividend for 2023, with a ratio of 15%. The entitlement ratio was 100:15 (shareholders owning 100 shares would receive 15 new shares), thereby increasing the charter capital from VND 8,731 billion to over VND 10,000 billion. The issuance was to be funded by undistributed post-tax profits at the end of 2023, and was expected to be carried out in Q3 2024, subject to approval from competent state authorities.
A Phat Dat project under development
However, the Board of Directors of Phat Dat decided to halt the above plan to prioritize the implementation of the issuance of shares to exchange for debt according to the plan approved at the 2024 Annual General Meeting of Shareholders, ensuring that the debt exchange is carried out within the timeframe committed by the company to its partners.
The Board of Directors also agreed to revoke the July 2024 resolution on the implementation of the plan and issuance of shares to pay dividends to existing shareholders. Chairman of the Board of Directors, Mr. Nguyen Van Dat, was authorized to make decisions and direct the implementation of related tasks in accordance with regulations.
Regarding the debt exchange, Phat Dat plans to issue more than 34 million shares at a price of VND 20,000 per share (1 share will be exchanged for VND 20,000 of debt) to exchange a debt of USD 30 million from ACA Vietnam Real Estate III LP (Cayman Island) in March 2022, with a fixed interest rate of 8% per annum. The purpose of this loan was to invest in the Phuoc Hai project in Dat Do district, Ba Ria – Vung Tau province.
This foreign debt is eligible for principal exchange into common shares for the lender when the Company carries out the issuance of shares to exchange for debt, and there is no collateral. The exchange will take place on the date of the second anniversary of the disbursement of up to 50% of the debt value.
Earlier, in June 2024, PDR successfully distributed 134.3 million shares to 23,945 investors, equivalent to 100% of the total offered shares, increasing the charter capital to VND 8,731 billion as of today. Of these, 119.9 million units were from shareholders’ exercise of rights, and 14.4 million units were sold to other investors when shareholders renounced their purchase rights.
With an offering price of VND 10,000 per share, the company raised nearly VND 1,343 billion. The proceeds will be used to finance the investment project for the development of Subdivision 2 and 9 of the Nhon Hoi eco-tourism urban area in Binh Dinh province; the Bac Ha Thanh urban residential project; the high-end commercial, service, and hotel center project; and two projects of the Thuan An 1 and 2 high-rise complex.
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