|Wooden planks being manufactured at Truong Thanh Furniture Corporation. The company plans to issue nearly 70 million shares to Tan Lien Phat Construction JSC. — VNA/VNS Photo Danh Lam
HA NOI (VNS) — Truong Thanh Furniture Corporation (TTF) was planning to issue nearly 70 million shares or 32.5 per cent of stake to Tan Lien Phat Construction JSC, a subsidiary of Vingroup, worth VND1.2 trillion (US$53.5 million).
Earlier, TTF, borrowed two loans worth over VND1.2 trillion from Tan Lien Phat. The first loan worth VND603.5 billion was set to be converted into shares at a conversion price of VND14,200 each, while the second loan worth VND598.5 billion was converted into shares at the price of VND22,000 each.
TTF was going to ask the shareholders at the general shareholders meeting in March 31 for the approval of the plan. If approved, the transaction would be made in Q2.
Tan Lien Phat was the investor in Vingroup's Vinhomes Central Park and the chain of supermarket and convenient stores of Vinmart and Vinmart+.
TTF, at the same time, was the main provider of wooden items and furniture of many large constructions of Vingroup such as Vinhomes, Vincom, Vinpearl, and VinDS, in addition to Vinmec.
TTF reported VND2.5 trillion in revenue and VND439 billion in net profits in 2015, an increase of 56 per cent and 63 per cent, respectively, over 2014.
Based in HCM City, with the charter capital of VND1.4 trillion, TTF works in the timber and furniture industry and forest plantation. TTF was managing 14,000 hectares of harvesting forest in the south of Viet Nam.
Except Vingroup, other long term partners of TTF include real estate developers of SSG, Dai Quang Minh, Dat Xanh Group, and Nam Long Group, apart from Coteccons.
According to the local media, with the country joining the Trans Pacific Partnership, it would give TTF a huge opportunity to find new business partners that have moved away from China.
As a strategic shareholder of Vingroup, TTF had a great opportunity to get a stronger output capacity through the group's retail centres in the local market.
TTF shares ended at VND31,200 each on the HCM Stock Exchange yesterday. — VNS