Dak Lak Rubber Joint-Stock Company (DRG-UPCoM) announces the Board of Directors’ resolution on the transfer of DRG’s capital in Dak Lak Rubber Investment Joint-Stock Company (DRI-UPCoM).
Specifically, in line with the capital transfer program, Dakruco has registered to sell 18,186,700 DRI shares at a price of 14,100 VND per share from September 26 to October 25, 2024, through agreement and order matching methods.
Currently, Dakruco holds over 44.5 million shares, representing a 60.84% stake in Dak Lak Rubber Investment. If the transaction is successful, Dakruco’s ownership in Dak Lak Rubber Investment will decrease to approximately 26.4 million shares, equivalent to a 36% stake.
Previously, DRG announced the sale of over 4.2 million DRI shares of Dak Lak Rubber Investment Joint-Stock Company out of the nearly 22.4 million shares registered for sale from June 3 to July 2. The reason for the partial sale was due to unfavorable market conditions. Following this transaction, DRG’s ownership in DRI decreased from 66.6% to 60.84%, equivalent to over 44.5 million units.
Subsequently, DRG registered to sell nearly 18.2 million DRI shares from July 10 to August 8. If this transaction is successful, DRG’s ownership in DRI will decrease to 36%.
DRG’s determination to sell the remaining registered DRI shares is in line with the company’s capital transfer strategy. Specifically, on May 27, the DRG Board of Directors approved the goal of transferring nearly 22.4 million DRI shares at a starting price of 14,100 VND per share. Accordingly, if the transfer is successful, DRG expects to retrieve approximately VND 316 billion from this transaction.
Recently, DRI approved a decision to extend the repayment deadline for Dakruco’s loan, signed in 2022, amounting to VND 40 billion. Specifically, the repayment deadline for VND 20 billion has been extended from September 13, 2024, to December 13, 2024, VND 10 billion from December 15, 2024, to March 15, 2025, and VND 10 billion from January 3, 2025, to April 3, 2025. All these repayments are overdue by more than three months.
According to the consolidated financial statements for the first half of 2024, DRG’s net profit for the period increased by VND 12.33 billion compared to the same period last year, from VND 2.7 billion to VND 15.03 billion. This improvement is attributed to a 49.24% reduction in financial expenses and a 21.72% decrease in management expenses.
According to the company’s self-prepared semi-annual 2024 report, the net profit was VND 7.40 billion, and the audited profit was over VND 15 billion. This discrepancy is due to the financial statements of DakLak-Mondulkiri Rubber Development Company Ltd. (a subsidiary in Cambodia), which reported a loss of VND 0.89 billion before audit and a profit of VND 6.98 billion after audit, resulting in a corresponding change in the consolidated financial statements of the parent company.
In the stock market, DRI shares closed at VND 12,200 per share on September 26, an increase of VND 400 compared to the previous closing price.
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