Thaiholdings (THD) has made public a resolution of the board of managers on the borrowing of VND500 billion from LienViet Post Bank to use as working capital for its food trading plan.

Both Nguyen Duc Thuy and his brother are well known businessmen in Vietnam

Thaiholdings will use 819,450 shares issued by Kim Lien Tourism JSC, the owner of Kim Lien Hotel, that it holds as collateral for the loan.

The shares mortgaged by Thaiholdings account for 70 percent of total hotel shares it holds.

This is the next step taken by Thaigroup after the back-door listing move through Thaiholdings when Thaigroup did not meet the requirements for listing because of accumulated losses.

In mid-August, or two months after Thaiholdings listed shares on the Hanoi bourse, an extraordinary shareholders’ meeting of Thuy’s Thaiholdings approved the resolution on the increase of its charter capital from VND539 billion to VND5.3 trillion to buy shares of Thaigroup, another business also belonging to boss Thuy, which was the holding company of Thaiholdings.

At that time, Thaiholdings spent VND2.954 trillion to acquire 147.5 million Thaigroup shares and hold 59 percent of shares of the company, taking over its previous parent company.

Prior to that, Thaigroup once held 74 percent of Thaiholdings’ capital, but it divested completely at the end of 2019.

Both Thaiholdings and Thaigroup are the enterprises related to boss Thuy.

Thuy is now chair of Thaigroup and the biggest shareholder in Thaiholdings with 20 percent of shares.

Prior to that, Thuy took the post of chair of Thaiholdings, but resigned from the post in February.

Financial reports showed that Thaiholdings’ business performance in the first nine months of the year was not satisfactory with modest profit only 12.5 percent of the yearly plan.

The noteworthy point is that Thuy’s Thaiholding had paid a VND113 billion deposit for the back-door listing and buying of shares from Thaigroup’s shareholders.

With the back-door listing affair, Thaiholdings is believed to hold a large amount of assets after acquiring Thaigroup.

Though the business results are modest, Thaigroup hopes it can make high profits from the transfer of some investment items. Thaigroup’s major business is trading imported coal which is the input material for cement plants in Ha Nam.

Thaigroup holds shares in many large enterprises and projects, including Kim Lien Tourism JSC, Ton Dan Ha Noi JSC - the owner of Thaiholdings Tower, holds a large proportion of shares in Enclave Phu Quoc JSC, (which implements the 352 hectare urban area project in Bai Thom, Phu Quoc), and Quang Nam Cement Plant. It also owns land in the Xuan Thanh Urban Area. 

M. Ha

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