DIC Corp to divest and dissolve loss-making units
The ceramic tile maker recorded a loss of more than VNĐ121 billion in the first quarter of 2024.
After posting a record loss of VNĐ121.24 billion (US$4.7 million) in the first quarter, DIC Corporation approved a plan of divestment and dissolution of unprofitable business units.
The company made an announcement on June 25 regarding its divestment plan and operational changes for its invested subsidiaries.
It intends to partially divest its stake in Brothers DIC Ceramic JSC by the end of September.
As of the end of March, DIC owned over 16 million shares of Brothers DIC Ceramic, representing an investment of VNĐ75.25 billion. The company had set aside the same amount as a provision, resulting in a net asset value of zero đồng.
Brothers DIC Ceramic operates in the construction material sector, specifically ceramic tile production. It has a charter capital of VNĐ180 billion.
DIC also plans to fully divest from Phú Riềng —Kratie Rubber JSC, with the transaction expected to be completed before September 30.
At the end of March, DIC owned 2 million shares of Phú Riềng—Kratie, equivalent to a five-percent stake. The investment value was VNĐ20 billion, with a provision of VNĐ20 billion, resulting in a net asset value of 0 đồng.
Additionally, DIC transformed the business entity type of DIC Hospitality from a limited liability company to a joint-stock company.
The company also approved an increase in ownership from 78.3 per cent to 99.9 per cent in DIC Hospitality.
As of March 31, DIC held a 78.3 per cent stake in DIC Hospitality, with an investment value of VNĐ784.5 billion.
Moreover, DIC approved the transfer of the commercial service area within the Cap Saint Jacques Complex Project Phase 1, located in Vũng Tàu City, with an area of 6,553.9 square metres.
The transfer recipient is DIC Hospitality and the transaction is expected to be completed in June.
On the stock market, DIC shares were traded at VNĐ26,700 a share at 1.30pm on Thursday. — VNS
