|Vingroup owns nearly 90 per cent of stake in the Viet Nam Exhibition and Fair Centre JSC. — Photo fica.vn
HA NOI (VNS) — Property developer Vingroup has contributed nearly VND1.5 trillion to become a strategic stakeholder in Viet Nam Exhibition and Fair Centre JSC.
This followed its acquisition of an 89.42 per cent stake in the Viet Nam Exhibition and Fair Centre One Member Co. Ltd. (VEFAC).
According to a decision made by Vingroup's board of directors on April 17, the group contributed VND1.489 trillion (US$68.9 million) to the charter capital of the Viet Nam Exhibition and Fair Centre JSC.
Established in 1960 as a State-owned firm, VEFAC's annual after-tax profits have reportedly ranged between VND3 billion and VND6.2 billion (between $142,860 and $295,240) over the last three years. The ratio of profit on net revenue varied from 1.6 per cent to 9 per cent.
Earlier this year, Prime Minister Nguyen Tan Dung had instructed the relevant ministries and agencies to execute a project for constructing the National Exhibition and Fair Centre on the basis of equitizing VEFAC.
As per the order, an international standard exhibition and fair centre will be built over an area of about 125.79 hectares (ha) on the Nhat Tan-Noi Bai axis in western Ha Noi and will contribute to the city's development.
In addition, a new shopping mall and office building will be constructed at 148 Giang Vo Street, which will be spread over an area of 6.838ha.
The Viet Nam Exhibition and Fair Centre JSC's first shareholders meeting is scheduled to be held in Ha Noi today. — VNS