PM approves equitization plan for Song Da Corporation
17:11 | 08/06/2017

VGP – The PM has approved the equitization plan for the parent company – Song Da Corporation in the form of selling part of the existing State capital and issuing shares to increase the corporation’s charter capital.

The Song Da Corporation – Joint Stock Company (JSC) will have a charter capital of VND4.5 trillion (US$198 million).

Song Da will issue 450 million shares with an initial price of VND10,000 per share, with the State retaining 229.5 million shares, accounting for 51% of the charter capital, until the end of 2019.

The State capital in Song Da Corporation is expected to be reduced by below 50% of the charter capital in 2020, while 822,000 preferential shares, equivalent to 0.183% of the charter capital, will be sold to Song Da’s staff.

A total of 135 million shares, taking up 30% of the charter capital, will be sold to strategic investors, and another 84.768 million shares, accounting for 18.82% of the charter capital, will be publicly auctioned.  

The PM entrusted the Minister of Construction to decide the starting price of the auction and adjust the structure of the charter capital as the shares are not sold to investors following the plan approved by the PM.

The PM authorized the Minister of Construction to decide on the criteria to select strategic investors as well as the specific ratio of shares to be sold to strategic investors, ensuring it complies with regulations in Decision No. 59/2011/ND-CP dated July 18, 2011 on the conversion of 100% State-owned enterprises into joint stock companies.

The Song Da Corporation – JSC is obliged to handle land issues, hire the State’s land, pay the annual land lease fee, and implement the management and use of land in line with the Land Law and relevant laws.

In regards to the laborer arrangement plan, the total number of workers at the time of announcing the corporation’s value is 464, 412 of whom will move on to work in the Song Da Corporation – JSC and the remaining 52 employees will be dismissed.

                                                                                                                         By Vien Nhu

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