Thaco cancels public company registration

Thursday, May 20, 2021 09:16

A Thaco plant in Chu Lai Open Economic Zone, the central province of Quang Nam. —Photo courtesy of Thaco

A recent announcement from the State Securities Commission of Viet Nam (SSC) revealed the cancellation of the public company registration of Truong Hai Auto Corporation (Thaco) since January 1, 2021.

With the cancellation, Viet Nam's leading automaker of billionaire Tran Ba Duong will not be required to disclose financial reports, or any resolutions from the General Meeting of Shareholders.

In 2020, it had received approval from shareholders to restructure the company. Accordingly it will de-merge non-auto businesses to create a new company, called Thaco Group.

After the establishment, Thaco will issue another amount of new shares to increase its charter capital corresponding to the amount it used to swap Thaco’s stocks for its shareholders.

That means Thaco will be divided to form Thaco Group with an estimated capital of over VND19.3 trillion, which is based on capital that Thaco split to establish Thaco Group. The shareholder structure includes Thaco's shareholders (excluding ESOP 2018 shareholders) according to the list that was determined by its Board of Directors.

Thaco will transfer all and Thaco Group will inherit and continue to execute all rights and obligations at the companies including: (i) Thaco’s real estate subsidiary, Dai Quang Minh; (ii) Thadi; and (iii) HAGL Agrico (HNG).

However, the de-merger plan has not been implemented yet.

Since the beginning of 2021, Thaco has officially taken control of HAGL Agrico. Correspondingly, HAGL Agrico will issue 550 million shares to swap all debt of Thagrico, with offering price for debt swap being VND5.5 trillion. At the same time, HAGL Agrico also issues 191.4 million shares to Thagrico.

After the transaction, Thaco group will increase its ownership in HAGL Agrico to at least 63.6 per cent.

Since 2020, the company has not published any new financial reports. But as of the end of 2019, its net revenue fell 4.6 per cent over 2018 to VND56.5 trillion.

With big investment in the agricultural sector in 2019, Thaco gained nearly VND1.6 trillion from this field. — VNS


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