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Dream House to up stake in mineral firm

Update: July, 29/2016 - 10:49
The board of directors of Dream House Investment Corporation (DRH) has approved a plan raising its stakes in Bình Dương Mineral & Construction Co (KSB) to at least 51 per cent, the company announced Wednesday. — Photo cafef.vn

HÀ NỘI – The board of directors of Dream House Investment Corporation (DRH) has approved a plan raising its stakes in Bình Dương Mineral & Construction Co (KSB) to at least 51 per cent, the company announced Wednesday.

The firm holds 20.2 per cent of the charter capital of the Bình Dương mineral company. It would buy shares to raise its holdings at a suitable time, the company said.

Dream House Co made the first investment in Bình Dương Mineral Co in March 2016 when it spent about VNĐ100 billion (US$4.5 million) to acquire almost 10 per cent of the mineral company.

Phan Tấn Đạt, CEO of Dream House Co, said this was not only a pure financial investment but the company wanted to make use of construction material, including brick and stone, of Bình Dương Mineral Co for real estate projects.

The company made other two share purchases in May and June, raising its holdings in Bình Dương Mineral Co to a total of 20.2 per cent of its charter capital on July 1. Total funds that Dream House has spent on this acquisition reached VNĐ260 billion.

KSB shares yielded one of the best returns in 2015 when its price soared over 68 per cent, from VNĐ21,300 to over VNĐ37,000 by the end of last year. Its price continued to skyrocket in the first half of this year, after the State Capital Investment Corporation announced its total divestment of over 50 per cent from Bình Dương Mineral Co in February.

KSB profits have been stable at about 23 per cent in the last four years. Last year it reported a net profit of VNĐ125 billion, a year-on-year increase of 30 per cent. – VNS

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