Vietnam Steel Corporation – Joint Stock Company – VNSteel (code TVN – UPCoM) has just announced a resolution adopting a plan to transfer capital from Vietnam Steel Corporation – Joint Stock Company in Vicasa Steel Joint Stock Company – VNSteel (code VCA-HOSE).
Accordingly, VNSteel approved the divestment of the entire 9.87 million shares, equivalent to 65% of the capital of Vicasa Steel Joint Stock Company – VNSteel (code VCA-HOSE), and this divestment can be carried out in two ways.
One is to transfer shares by matching orders on the HoSE floor.
Two is to transfer shares through off-floor transactions of HoSE (public offering of shares of public companies through public auctions) including normal public auctions and public auctions by lot.
VNSteel said that through studying the business situation and evaluating the strengths and weaknesses of the above methods, the transfer of capital through a public auction by lot has more outstanding advantages than the remaining methods.
Therefore, the General Director agreed to choose the method of transferring shares through off-floor transactions of HoSE, which is a public offering of shares through a public auction by lot, with a starting price of VND 238 billion per lot of shares, equivalent to a post-audit real value of VND 24,158/share as assessed by Vietnam Audit and Valuation Company.
The procedure is to sell by public auction, and in case the public auction is unsuccessful, a competitive offering will be made. If the competitive offering is unsuccessful, the agreement method will be applied. The expected implementation time starts from November, and the expected completion of divestment is from Q4 2024 – Q1/2025.
Currently, VNSteel is the largest state-owned enterprise in the steel industry with a charter capital of nearly VND 6,800 billion. Of this, the State Capital Investment and Trading Corporation (SCIC) holds more than 93% of the capital, and Danang Steel Joint Stock Company holds 7.14%.
In terms of business results, Vicasa Steel recorded Q3 2024 revenue of nearly VND 385 billion, accumulated to VND 1,013 billion, down 19% over the same period last year (VND 1,254 billion). After deducting expenses, the company reported a Q3 2024 loss of more than VND 3.3 billion (a loss of nearly VND 2.7 billion in the same period), a cumulative 9-month loss of VND 1.5 billion – while the same period last year made a profit of VND 3.5 billion. Thus, retained earnings decreased from VND 4.88 billion to nearly VND 2.5 billion.
Currently, VCA shares are up 6.94% to VND 9,090/share.
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The transfer of shares via an off-exchange transaction method involves a public offering of shares through a public auction of a share package with a starting price of 238 billion VND per share package, equivalent to 24,158 VND per share.
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