Gelex to increase charter capital in Gelex Eletric

Wednesday, May 30, 2018 07:45

The Vietnam Electrical Equipment Joint Stock Corporation (Gelex) may increase the charter capital of its subsidiary business Gelex Eletrical Equipment Co Ltd (Gelex Electric) six-fold, to VND2.2 trillion (US$98.6 million).— Photo vietnambiz.vn

The Vietnam Electrical Equipment Joint Stock Corporation (Gelex) may increase the charter capital of its subsidiary business Gelex Eletrical Equipment Co Ltd (Gelex Electric) six-fold, to VND2.2 trillion (US$98.6 million).

The charter capital increase will be carried out through merging Gelex Electric with three other subsidiaries of Gelex and cash funding. Gelex has a 100 per cent stake in Gelex Electric.

Gelex will hand over its ownership in the three sub-businesses, which are Vietnam Electric Cable Corporation (Cadivi), Electrical Equipment JSC (Thibidi) and Hanoi Electro-Mechanical Manufacturing JSC (HEM), to Gelex Electric after raising its stakes in these three firms to 100 per cent.

Gelex is holding a respective 79.76 per cent, 79.79 per cent and 65.88 per cent stake in the three companies. Therefore, the three companies may be delisted from the stock markets once the deals complete.

In addition to handing over the three companies to Gelex Electric, Gelex will also add VND19 million in cash to the charter capital of Gelex Electric.

Gelex has recently announced it will issue maximum 72 million shares to convert 1,440 warrants for bondholders at VND16,600 per share. — VNS

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