Specifically, the Vietnam Textile Group (Vinatex, UPCoM: VGT) will offer for sale all 4.5 million shares (19.11%) it holds in LPtex to less than 100 investors at VND 12,000/share.
The expected timeline for this transaction is from September 2024 onwards. If successful, Vinatex could reap VND 54 billion from this deal.
Previously, in 2022, Vinatex had planned to sell over 19% of LPTex’s capital at a starting price of VND 19,800/share, corresponding to a minimum share value of VND 89 billion, but it was unsuccessful.
Two years later, Vinatex is again registering to divest its entire investment in LPTex, but the offering price is 39% lower than the initial registration.
It’s not just Vinatex; the Hanoi Textile and Garment Corporation (Hanosimex, UPCoM: HSM) is also registering to divest its entire holding of nearly 2.1 million shares (8.87%) in LPTex at a selling price of VND 12,000/share. The expected timeline for this transaction is also from September 2024.
As of June 30, 2024, Hanosimex recorded its initial investment in LPTex at VND 18 billion. If the divestment is successful, Hanosimex could make a profit of over VND 7 billion from this transaction.
Lien Phuong Textile and Garment Company (LPTex) was established in 1960, initially named Lien Phuong Technical Silk Company – Lysyntex, specializing in weaving synthetic fiber fabrics (polyester, nylon…). During the 2013-2019 period, the company restructured its production, merged with Vinatex ITC, and changed its name to Lien Phuong Textile and Garment Joint Stock Company with a charter capital of VND 250 billion, headquartered at 18 Tang Nhon Phu, Phuoc Long B Ward, Thu Duc City, Ho Chi Minh City.
Image: LPTex
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LPTex currently owns two main factories: VITC Garment Factory (under VITC Garment Co…) with a capacity of 600,000 sets/year and a woolen fabric factory with a capacity of 6 million m/year.
In terms of business performance, in 2023, LPTex recorded consolidated revenue of nearly VND 816 billion but incurred a post-tax loss of over VND 51 billion. For 2024, the Company targets total revenue of VND 800 billion and aims to reduce its loss to VND 4.5 billion.
After Vinatex completes its divestment from LPTex, the Company’s General Meeting of Shareholders will elect new members to the Board of Directors and the Supervisory Board. Currently, Mr. Le Thanh Liem is the Chairman of the Board and General Director of LPTex.Â
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