Customers make transactions at an Ocean Bank's branch in Ha Noi. Ocean Group (OGC) plans to sell Ocean Thang Long Investment Co to a local real estate enterprise. — VNS Photo Truong Vi

HA NOI (Biz Hub) — Ocean Group Joint Stock Company (OGC) will sell Ocean Thang Long Investment Company (OTL) – one of its subsidiaries – to a local real-estate enterprise, OGC's Board of Directors said yesterday in the company's 2015 share-holders meeting.

OGC will sell OTL shares for a price of at least VND18,000 per share. The sale will maximise benefits for OGC's shareholders, the company said.

The sale is part of a larger re-structuring of OGC's subsidiaries due to financial problems, also forcing divestment from other businesses and delaying high-potential projects.

OTL will be divided into two smaller divisions, one of which will be responsible for OTL's previous projects.

At the shareholders meeting, the company's Board of Directors also reported business results for last year.

In 2014, despite earned revenues of VND4.13 trillion ($189.4 million), OGC suffered a total loss of VND2.52 trillion ($115.6 million) in after-tax profit, including the parent company's loss of VND2.2 trillion ($100.9 million).

Three out of five main business sectors—commercial and retail, hospitality and services, and financial investment and other activities—contributed most to the losses with VND970 billion ($44.5 million), VND813 billion ($37.3 million), and VND940 billion ($43.1 million), respectively.

This year, OGC targets total revenue of VND2.3 trillion ($105.5 million) and a total pre-tax profit of VND570 billion ($26 million), heavily relying on VND376.27 billion ($17.2 million) from financial operations.

Due to poor business performances and delays in publishing business results on the securities market, OGC share received several warnings of being delisted from the stock market.

The code is currently marked as a designated security and tradable only in the afternoon session. After the last trading session, OGC declined by 3.84 per cent to VND2,500 in market value.

To avoid being delisted from the securities market, Ocean Group will hire Deloitte Vietnam – an auditor – to report the company's business results in the first half of this year and publish them on the market.

At the meeting, OGC also announced two changes in the Board of Directors.

Firstly, Ha Van Tham, former Chairman of the OGC's Board of Directors, was officially removed from his position as he was arrested in October for committing fraud in the credit loan sector.

Secondly, shareholder Nguyen Thi Lan Huong – Director General of Ocean Hospitality and Service Joint Stock Company–and Hoang Thi Phuong Lan–Head of Robot Tosy's Internal Audit Department— were added to the Board.

Only 77 shareholders – 10.78 per cent of total shareholder number – attended the annual meeting yesterday. Ocean Group failed to organise its 2015 shareholder meeting twice before since the number of participants in the last two meetings were not sufficient to take votes. — VNS