Hanoi Railway Transport JSC (coded HRT) and Saigon Railway Transport JSC (coded SRT) have approved the resolution of their Boards of Directors regarding the issuance of shares for swap under the merger contract. The ex-dividend date is set for October 31, 2024.
Accordingly, the merged company, Railway Transport JSC, will issue nearly 130.4 million shares to swap all the shares of HRT and SRT shareholders, corresponding to a total issuance value of over VND 1,300 billion par value.
The swap ratio is 1 HRT share for 1.09071 shares of the merged company, and 1 SRT share for 0.85565 shares of the merged company. These shares will not be restricted from transfer.
The merger is part of the Restructuring Plan of Vietnam Railways Corporation (VNR) for the period up to the end of 2025, as determined by the Prime Minister in Decision No. 562/QD-TTg dated June 26, 2024. HRT has a charter capital of over VND 800 billion, and SRT has a charter capital of over VND 500 billion. Both are members of VNR. Currently, VNR holds 91.62% of HRT’s capital and 78.44% of SRT’s capital.
According to VNR’s leadership, the merger of these two units will increase revenue for the company, boost employees’ income, and allow for the most efficient use of both units’ physical infrastructure. VNR plans to register the business of the merged company in the early fourth quarter of 2024, ensuring the completion of the merger within 2024, in line with the Prime Minister’s directives.
Along with this merger “game,” the duo of HRT and SRT has been creating strong waves in the stock market recently. Both stocks are trading near their all-time highs, with gains of over 100% since the beginning of the year. The sharp upward trend is partly attributed to the recent attention given to the high-speed rail project on the North-South axis (with a scale of up to $70 billion).
The stocks are surging despite ongoing business challenges. According to the second-quarter financial statements for 2024, SRT recorded revenue of nearly VND 526 billion, a nearly 24% increase compared to the same period last year, but after-tax profit reached only VND 4.9 billion, a decrease of over 56% compared to 2023.
The main reason, according to explanations, is the increase in the price of raw materials and fuel, not to mention additional costs incurred to serve customers due to landslides and increased railway transport management fees…
Similarly, HRT’s second-quarter revenue increased by 24% to VND 778 billion, but after-tax profit stood at only VND 6 billion, equivalent to one-fourth of the previous year’s figure. Besides interest expenses, selling and management expenses also increased by 38% and 20%, respectively, leading to a significant decrease in the company’s net profit from business activities.
The River Recedes: Rail Traffic Expected to Resume on Long Bien and Duong Bridges by Evening
The Vietnam Railways Corporation has announced that train services are expected to resume this afternoon (September 13) as water levels recede to safe levels, allowing trains to cross the Long Bien and Duong bridges safely.
The Magic of Rail Travel: Record Numbers of Passengers Spark a Ticket ‘Gold Rush’ for Vietnam’s September 2nd Holiday
As of now, the railway industry has sold 130,000 tickets for the National Day holiday, a remarkable surge of over 10% compared to the previous year. This morning (August 31st), trains heading south, especially additional routes such as Hanoi – Thanh Hoa, Hanoi – Hai Phong, and Hanoi – Lao Cai, were fully booked. Passengers onboard were impressed by the staff’s distinctive uniform of golden-starred red shirts.
The Green and Historic Province of Thanh Hoa: A Place of Diversity and Administrative Efficiency
With its recent administrative reorganization, Thanh Hoa now boasts an impressive array of urban and rural districts. This vibrant province is home to 2 cities, 2 townlets, 22 rural districts, and 547 communal-level administrative units.
After the implementation of the plan to rearrange district- and commune-level administrative units in the 2023-2025 period, Thanh Hoa province will comprise 26 district-level administrative units, including 22 districts, 2 towns, and 2 cities (a reduction of 1 district); and 547 commune-level administrative units, consisting of 452 communes, 63 wards, and 32 townships (a reduction of 15 communes, an increase of 3 wards, and 1 township).
