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NBB tells shareholders of its plan to take-over CII Holdings

Update: April, 25/2015 - 08:34
CII has actively bought NBB shares since the beginning of this year. — Photo ndh

HA NOI (VNS) — Real estate developer NBB Investment Co (NBB) yesterday admitted that HCM City Infrastructure Investment JSC (CII) had proposed it become a member company of CII Holdings.

This was revealed at the annual shareholders' meeting in Ha Noi.

Don Truong Trieu, NBB's chairman, said CII presented two proposals, one for NBB to become a CII member with the suggested name CII Member, not CII Land as previously suggested.

The other proposal was that CII increase its holdings in NBB to 40-50 per cent.

"This would not be a take-over, but just a pure investment co-operation," Trieu said, adding that any procedures to execute the transaction would be discussed at an extraordinary meeting of shareholders.

CII has actively bought NBB shares since the beginning of this year. It raised stockholding in NBB to 24.06 per cent of NBB's charter capital on Thursday after another purchase of 346.800 NBB shares.

NBB shares closed flat yesterday at VND23,400 (US$1.08) a share while CII's price ended 1.9 per cent down at VND21,100 ($0.98) each.

NBB last year invested more than VND170 billion ($7.9 million) to develop two major projects, including Son Tinh residential area in Quang Ngai Province and City Gate Towers high-rise apartment in HCM City to create supplies for sales during 2015-17.

However, the company's performance was slow in 2014 as its total sales reached just VND256 billion ($11.9 million), about 83 per cent of its yearly plan, while the net profit was VND35.5 billion ($1.6 million), equivalent to 50.7 per cent of the target.

NBB attributed the modest results to the slowdown in capital divestment from Quang Ngai Mineral Company. It also said that the Son Tinh and City Gate Towers projects that made profits from these developments was recorded this year instead of 2014.

The real state company decided to keep cash dividends unchanged in 2014 at the rate of 10 per cent.

In 2015, it has set a revenue target of nearly VND299 billion ($13.8 million), of which VND156 billion ($7.2 million) will be from real estate sales, while the remainder from earnings of divestment from Quang Ngai Mineral Co.

It's net profit is expected to reach VND70 billion ($3.2 million) for the whole year and the dividend rate is set at just 8 per cent.

Besides the major Son Tinh and City Gate Towers projects, NBB will develop other buildings, such as Diamond Riverside apartment in HCM City and Mountain Villas in northern Ha Long City.

NBB also plans to resume its convertible bond issue plan this year worth VND210 billion ($9.7 million) with a proposed term of three to five years. The interest rate is likely to be fixed at five to nine per cent a year, paid annually. — VNS


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