Mr. Dang Thanh Tam, Chairman of the Board of Directors of Kinh Bac City Development Corporation (stock code: KBC), has just announced to Ho Chi Minh City Stock Exchange (HOSE) about the registration of transferring ownership of 86.5 million KBC shares (equivalent to 11.27% of the charter capital of Kinh Bac Company) to DTT Development and Investment Joint Stock Company (DDT Company).
The expected transaction time is from September 9 to October 8, with the purpose of contributing capital to DDT Company with KBC shares. If the transaction is successful, the number of KBC shares held by Mr. Tam will decrease to 52.12 million, equivalent to 6.79%.
After this transaction, DDT Company will become a major shareholder of Kinh Bac City Development Corporation, with an ownership ratio of 11.27%. Assuming a closing price of KBC shares at VND 26,750/share, the value of the transferred shares is nearly VND 2,315 billion.
DTT Company was established in January this year, operating in the field of real estate business. Mr. Tam is the legal representative and director of this company.
KBC stock price movement from the beginning of 2024 up to now Source: Fireant
Regarding Kinh Bac City Development Corporation, recently, the company has successfully issued KBCH2426001 bonds, raising VND 1,000 billion. The bonds have a term of 24 months and will mature on August 28, 2026, with a fixed interest rate of 10.5%/year
The purpose of the issuance is to restructure the company’s debts to Saigon – Bac Giang Industrial Park Joint Stock Company and Hung Yen Investment and Development Group Joint Stock Company.
As of the end of Q2/2024, the total liabilities of Kinh Bac City Development Corporation were VND 20,491 billion, an increase of over VND 7,000 billion compared to the end of 2023. Of this, total loans accounted for nearly 24%, up 33.9% compared to the beginning of the year, to nearly VND 4,900 billion.
By the end of June 2024, the company’s cash and cash equivalents were valued at VND 1,210 billion (up 43% compared to the end of 2023), including VND 931 billion in cash and VND 278 billion in cash equivalents.
In the market, KBC shares once surged in late March, reaching above VND 36,000/share. However, the stock has since corrected and dropped sharply to VND 26,750/share, down more than 15% from the beginning of the year.
