Gelex Electric Equipment Co Ltd has purchased 27 million shares, or 6.02 per cent of Viglacera Corporation’s capital, lifting its stake to 9.8 per cent, the Ha Noi Stock Exchange announced.

Gelex Electrical Equipment Co Ltd is a subsidiary of Gelex Electrical Equipment Joint Stock Corporation (GEX) which is trading shares on the Ho Chi Minh Stock Exchange.

This quantity was equal to the amount of shares that Dragon Capital fund group sold via negotiation method worth total VND887 billion (US$38 million), equivalent to VND20,000 ($0.86) per share, in the two sessions in late February.

Shares of Viglacera, coded VGC, has climbed more than 21 per cent in the last two months to VND21,800 per share on Tuesday.

The price hike was attributable to speculation that the Ministry of Transport (MOT) will offload its stake in Viglacera this year, which it failed to sell last year due to gloomy market conditions.

Early this month, MOT approved the divestment plan following which it will sell 80.58 million Viglacera’s shares, equivalent to 17.97 per cent of the company’s charter capital, in an auction, slated for March 29, on the Ha Noi Stock Exchange.

These shares will be sold for a minimum price of VND23,000 per share, valuing the deal at VND1.85 trillion ($79.5 million). After the sale, MOT will retain 36 per cent of Viglacera’s capital and veto power. VNS