The Viet Nam National Chemical Group (Vinachem) has registered to auction all 11.45 million shares it holds in Duc Giang Chemical Group JSC (DGC), equivalent to 8.85 per cent of DGC’s capital.
|Duc Giang-branded washing powder made by Duc Giang Chemical Group JSC (DGC). DGC is a state-owned enterprise established in 1963 and specialises in washing powder production. Photo cafef.vn|
The shares will be offered at a starting price of VND49,100 (US$2.1), nearly double the current market price of VND27,000.
Vinachem expects to collect VND560 billion from the sale. The transaction time is scheduled for December 31 at the Ha Noi Stock Exchange (HNX).
DGC is a State-owned enterprise established in 1963 and specialises in washing powder production.
The company was equitised in 2004. It filed for listing on the HNX in early November with a registered volume of more than 129 million shares.
In the third quarter of 2019, DGC's net revenue reached VND1.15 trillion, down 23 per cent year-on-year. Its sales also decreased by 16 per cent year-on-year.
Its pre-tax profit touched VND122 billion. Post-tax profit reached VND116.5 billion, a fall of more than half compared to the third quarter last year.
In the first nine months of this year, the company's net revenue reached VND3.6 trillion, down 12 per cent against 2018, of which export revenue reached VND2.8 trillion, accounting for 78 per cent of the total revenue. Post-tax profit in the nine months totalled VND397 billion, down 36 per cent, fulfilling 45.5 per cent of the yearly target.
By the end of the third quarter, the company's inventory had increased by VND113 billion compared from the beginning of the year to approximately VND910 billion.
Total assets also decreased by VND180 billion to VND4.55 trillion, while liabilities dropped by VND420 billion to VND1.14 trillion. — VNS
The semi-annual consolidated financial statement of Vinachem showed a steep drop in profit, partially due to its accounts and assets being frozen by the court.
Commercial banks are attempting to sell off a host of mortgaged assets, including real estate and cars, to speed up the settlement of huge bad debt.