Platinum Victory Pte Co Ltd, a wholly-owned subsidiary of Singapore-based automotive group Jardine Cycle and Carriage, plans to buy three million shares of the Refrigeration Engineering Corporation (REE).
Air-conditioners built by Refrigeration Electrical Engineering Corporation (REE) (Photo: reecorp.com)
After the purchase, Platinum Victory will increase its ownership in REE from 28.97 percent to nearly 30 percent, equivalent to more than 93 million shares.
Trading time is scheduled from December 5 this year to January 3 next year via order matching and agreement method.
On the stock market, REE shares are trading at around 36,000-38,000 VND (1.6-1.7 USD) while the offer price of Platinum Victory is 45,000 VND per share, 20-25 percent higher.
Based on the current market price, Platinum Victory will spend about 108 billion VND (4.7 million USD) to buy the three million shares of REE.
Previously, Platinum Victory had just finished the purchase of more than 12.6 million REE shares, equivalent to 40 percent of the company’s capital.
Recently, REE has actively invested in the electricity and water sector. In 2019, the company plans to use 100 million USD mobilised from the recent bond issuance as well as the 2018 undistributed profit, totalling 2 trillion VND, for M&A activities in these segments.
By the end of the third quarter this year, REE has been investing in 20 associate companies with a total investment of nearly 6.6 trillion VND, most of whom are operating in the fields of water and electricity.
As for electricity, REE is investing in nine associate companies with a total investment of more than 4.3 trillion VND, of which investment into Pha Lai Thermal Power Co Ltd accounts for the highest proportion with a value of more than 1.45 trillion VND, equivalent to an ownership rate of more than 24.1 percent.
In the first nine months of this year, REE’s net revenue reached 3.56 trillion VND, up 2.9 percent year-on-year and completed more than 66 percent of the yearly plan.
Post-tax profit reached more than 1.24 trillion VND, down 4.5 percent against last year and completed 84.8 percent of the annual target./.VNA
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