Chairman of Thaigroup Nguyen Duc Thuy has become chairman of Kim Lien Tourism Joint Stock Company.

Chairman of Thaigroup Nguyen Duc Thuy becomes chairman of Kim Lien Tourism JSC after acquiring 52.4 per cent of its charter capital.— Photo tinmoi.vn

He confirmed his payment of more than VND1 trillion (US$44.8 million) to acquire nearly 3.65 million shares of the company, or 52.4 per cent of its charter capital.

The 3.5ha Kim Lien Hotel, located in Dao Duy Anh Street, is seen a ‘golden land' in Ha Noi as it is close to famous destinations such as Thong Nhat Park, Hoa Lo Prison Museum, Temple of Literature and Hoan Kiem Lake.

In a Viet Nam News interview conducted via telephone, Thuy said the investment in Kim Lien Hotel was part of the Thaigroup's long-term strategy.

"We plan to develop Kim Lien Hotel as a highlight of Ha Noi with a complex of four and five-star hotels," Thuy said.

The shares were bought from the State Capital Investment Corporation (SCIC) at an auction held on the Ha Noi Stock Exchange in December last year. However, details about the investor who bought the shares were not disclosed at that time.

These shares were sold to the highest bidding price of VND274,200 ($12.19) each, a nine-fold increase over the starting price of VND30,600 ($1.36).

The state-owned Kim Lien Tourism Company primarily operates in the field of restaurant and catering services. It has a charter capital of nearly VND69.6 billion ($3.1 million).

Apart from the SCIC, the other three institutions that hold nearly 40 per cent of the company's charter capital are GPBank with a 21.6 per cent stake, Post and Telecommunication Finance Co Ltd with a 6.7 per cent stake and GP Invest Joint Stock Company with a 6.6 per cent stake.

Kim Lien Hotel has nine buildings, comprising 437 apartments and five restaurants. In 2014, the hotel earned VND127 billion ($5.7 million) in revenue and VND13.5 billion ($605,652) in after-tax profit.

The 3.5ha hotel is owned by the city of Ha Noi. In September 2014, the municipal People's Committee decided to lease the land to the Kim Lien Tourism Company for 50 years from 1993 to 2043.

Thaigroup was established in 2007 with a registered capital of VND2.5 trillion ($112.2 million). The company has been focusing its long-term investment in the production of cement, fertilisers and hydropower. It has also invested in education and tourism services. 

VNS