Vingroup, VID Group become strategic partners of Vinatex

Friday, Sep 12, 2014 14:28

A production line of Vinatex in Viet Nam. The corporation's equitisation is expected to help increase investment in production system. — Photo

HA NOI (Biz Hub) — Vingroup and Vietnam Investment Development Group (VID Group) have become strategic partners of the Viet Nam National Textile and Garment Group (Vinatex).

The group's Deputy General Director Pham Nguyen Hanh announced this on September 11. VID Group will buy 14 per cent of Vinatex's registered capital, equal to 70 million shares, while Vingroup will buy 10 per cent, which is equivalent to 50 million shares.

Under the approved plan, the company is allowed to sell 120 million shares, or 24 per cent of the charter capital, to strategic partners.

Vinatex has a registered capital of VND5 trillion ($234.7 million), which is equivalent to 500 million shares. About 122 million shares will be sold in the IPO.

The plan also allows the State to hold 51 per cent of the capital, and the local staff to keep 3 million shares, or 0.6 per cent of the charter capital.

With an initial price of VND11,000 ($0.49) per share, the IPO is expected to raise around VND1.22 trillion ($58 million). — VNS

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