HÀ NỘI — Trường Thành Furniture Corporation (HoSE: TTF) would acquire Thiên Thanh Sanitaryware JSC on Tuesday to avoid the risk of cumulative losses outpacing charter capital, cafef.vn reported.
After the merger, Trường Thành Furniture will take over the business activities of Thiên Thanh Sanitaryware JSC.
The acquisition was approved at the former’s extraordinary shareholder meeting in late October 2018. At another extraordinary shareholder meeting the following month, shareholders in Trường Thành approved a plan to issue 96.6 million shares to swap for Thiên Thanh shares at a rate of 8.21 to 1.
The deal will increase the furniture firm’s charter capital to VNĐ3.15 trillion (US$135.4 million) and the amount of shares issued for swapping will account for 46.6 per cent of the firm’s total.
The post-acquisition firm targets VNĐ253 billion in revenue for 2019 and VNĐ12.8 billion in post-tax profit.
Trường Thành Furniture in 2018 recorded VNĐ1.03 trillion in total revenue and a loss of VNĐ344 billion. In 2017, the company earned VNĐ276 billion in profit. — VNS