On November 24th, SAM Holdings’ Board of Directors reached a resolution to proceed with a co-investment with Dong Nai Plastics join-stock company (HNX: DNP) into Thua Thien Hue Construction and Water Supply Ltd. (Huewaco) through share purchase.
Specifically, both SACOM and Dong Nai Plastics will purchase the shares issued to Huewaco’s strategic shareholders. The value of this investment co-operation is 70 billion VND, all of which will be funded by SAM Holdings be contributed to investment, fee payment for Dong Nai Plastics by 0.5% / year on the total value of the initial investment, and profit devision corresponding to the investment’s ratio value.
Dong Nai Plastics JSC will register to purchase shares issued to Huewaco’s strategic shareholders, monitor the investment after all transactions are completed and participate in administrative activities of Huewaco during the co-operation. The duration for this investment co-operation is 6 years right after the contract is signed by all parties.
Heretofore, nearly 9.1 million shares of Huewaco was put up for auction with asking price of VND10,000/share. The auction ended with 507 investors totaling 9.05 million shares purchased at the asking price and grossed over 90 billion VND.
Established in 1909, fomerly known as Hue Water Supply Factory and renamed to Thua Thien Hue Construction and Water Supply one member co., Ltd in 1992, Huewaco is currently holding the capital of 876 billion VND with the revenue of 165 billion VND in the first 6 months of 2016, up to 11 billion compared with the first half of 2015 and the net profit of 15.3 billion VND, up to 22% over the same period. Total retained earnings remained 31.3 billion VND on June 30th, 2016.