Tuesday, September 29 2020

VietNamNews

Vingroup shakes up urban development firm

Update: August, 25/2020 - 16:20

 

The sign of the urban area Vinhomes Riverside in Sài Đồng Commune, Long Biên District, Hà Nội. — Photo cafef.vn

HÀ NỘI — Vingroup Joint Stock Company (Vingroup) has split its property arm into two in an attempt to restructure its business operation.

Vingroup decided to withdraw VNĐ500 billion worth of capital from Sài Đồng Urban Development and Investment Joint Stock Company to form a new company.

The new firm is Sado Trading Joint Stock Company and Vingroup will hold 98 per cent of the new company’s capital.

After the deal, the charter capital at Sài Đồng Urban Development and Investment JSC will be scaled down to VNĐ700 billion (US$30.2 million).

Sado Trading JSC operates in the consultancy sector, excluding activities in legal advisory, finance, accounting, auditing, taxation and securities.

Main activities include merchandise retail, brokerage and auction, stationery, advertising, eateries, trade promotion, and entertainment.

At the end of 2019, Vingroup merged Sài Đồng Urban Development and Investment JSC at a 1.1:1 ratio, meaning each of the latter’s shares was worth 1.1 Vingroup shares.

At the time of the acquisition on December 11, 2019, shares of Sài Đồng Urban Development and Investment (UPCoM: SDI) rose to VNĐ115,000 ($4.96) apiece from VNĐ90,000 apiece.

Meanwhile, Vingroup shares (HoSE: VIC) fell to VNĐ86,100 apiece from VNĐ120,000 apiece.

Vingroup has been holding 100 per cent of Sài Đồng Urban Development and Investment JSC following the merger deal.

After the deal, SDI shares were delisted from the Unlisted Public Company Market on December 26. Its shares finished the last trading day at VNĐ115,000 apiece.

Sài Đồng Urban Development and Investment JSC was founded in 2009, making investment in some of the major projects such as Vinhomes Riverside, Vinhomes Gardenia, Mai Dịch Park, Vinhomes Skylake and Cầu Giấy Park. — VNS

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