The Board of Directors of Dong Duong Import-Export Industrial Investment JSC (HNX: DDG) authorized CEO Tran Kim Sa to seek partners for the transfer and to decide on the timing of the transfer.
Ms. Kim Sa will also be responsible for approving the sale price and negotiating contract terms with partners. The CEO is in charge of drafting and has the authority to sign all contracts and related documents, including completing all procedures as required.
Currently, DDG holds 84.93% of its subsidiary, CL. This company provides raw materials such as sawdust, rice husks, and biomass fuels for the parent company’s heat and steam supply operations at the Tra Noc Industrial Park in Can Tho city, as well as for commercial activities in the Mekong Delta region.
Joint Stock Company CL was previously known as Limited Company CL, established in 2015 in Can Tho city, specializing in recycling scrap materials. The initial charter capital was VND 10 billion, with Ms. Tran Thi Thanh Truc (born in 1981) as the Director and legal representative.
The initial shareholders included Mr. Nguyen Huynh Chi Cuong, holding 60%, and Ms. Truc with 40%. However, the group soon added Ms. Huynh Thi Hoa, who acquired a 30% stake just over a month later. As a result, the ownership ratios changed to 40%, 30%, and 30%, respectively.
In 2017, there were further changes in the shareholder structure. Ms. Hoa acquired a 90% stake and replaced Ms. Truc in her roles. The remaining shares were held by Mr. Le Dang Khoa. In the same year, the legal representative changed to Mr. Nguyen Van Hop, who also took on the roles of Chairman of the Members’ Council and Director. At this time, Mr. Hop’s capital contribution was 45%, with the remaining 55% held by Ms. Nguyen Vu Huong Giang.
In 2019, the charter capital was increased to VND 20 billion. Mr. Hop contributed 45% of the capital, while the other 55% was contributed by Ms. Nguyen Thi Kim Anh. Soon after, Ms. Kim Anh transferred her shares to Ms. Nguyen Nu Phuong Thanh.
Two years later, in 2021, Company CL transitioned to a joint-stock company model, with a charter capital of VND 65 billion. The shareholders remained Mr. Hop and Ms. Phuong Thanh, but they were joined by Ms. Le Thi Thuy Ha, holding 45%, 53%, and 2% of the shares, respectively.
During this phase, DDG decided to invest over VND 63 billion from an additional share offering to acquire 98% of Company CL. However, their ownership decreased to 84.93% by the end of 2022 due to an increase in the subsidiary’s charter capital to VND 75 billion. In 2020, Company CL achieved a revenue of VND 99 billion but only posted a post-tax profit of VND 317 million.
The headquarters of Company CL, located at Lot 2.9A6, Road No. 6, Tra Noc 2 Industrial Park, O Mon district, Can Tho city, includes land use rights and ownership of constructions on the land, totaling an area of nearly 8,000m2. The site houses a bubbling fluidized bed boiler system with a capacity of 35 tons/hour and machinery and equipment for an 8-ton/hour beer husk drying system. This system is valued at VND 156 billion by International Valuation and Investment Consulting Joint Stock Company and is currently used by DDG as collateral for a VND 300 billion bond lot (DDGH2123001) issued in 2021.
The bond lot was initially scheduled to mature in 2023 but was extended to 2025 with the bondholders’ agreement. DDG faced challenges due to a decrease in heat and steam consumption by customers amid an economic downturn, particularly affecting liquor and beer producers (their primary clients). As a result, the company could not repurchase 30% of the principal value (VND 90 billion) as planned in February 2024 and had to defer interest payments, pushing them to the second quarter.
Currently, Company CL is the only subsidiary after DDG sold Blue Globe Company Limited, a Long An-based mechanical engineering, metal treatment, and coating company, in late last year. The sale price, set by the Board of Directors, was over VND 14.5 billion (for a 98% stake) to recover capital for enterprise restructuring and supplement working capital for production and business activities.
Source: Joint Stock Company CL
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