22:50 (GMT +7) - Saturday 26/09/2020


Dream House aims for 51% of Binh Duong Mineral

Released at: 09:04, 14/09/2016

Dream House aims for 51% of Binh Duong Mineral

Photo: KSB

Real estate company targets increasing its holding in mining and construction company.

by Duy Anh

The Dream House Investment Corporation (DRH) will announce an increase to its ownership in the Binh Duong Mineral and Construction Company (KSB) to 51 per cent at the upcoming extraordinary shareholders meeting on September 22.

Binh Duong has attracted much attention from investors in recent times, since the State Capital Investment Corporation (SCIC) completely divested its holding of 11.7 million shares in February.

DRH will hold the extraordinary shareholders meeting to vote on an additional board member, submit a plan on capitalization and, most importantly, submit the plan on turning KSB into a subsidiary.

The Ho Chi Minh City-based real estate organization was among those who acquired SCIC’s shares in February. On July 27 its management board announced it would increase its ownership in KSB to more than 51 per cent.

DRH currently holds 5.22 million KSB shares, or 22.3 per cent of charter capital, after acquiring a further 500,000 shares during the trading session on August 29.

At its August 19 meeting with investors, KSB’s Board of Directors revealed that, based on signed contracts to date, in the first nine months of 2016 operating revenue was estimated at VND638 billion ($28.6 million), equal to 75 per cent of the annual plan, with after-tax profit of VND142 billion ($6.36 million), or 99 per cent of the annual plan.

Along with its impressive financial results, the information that DRH plans to increase its ownership in KSB to 51 per cent pushed its share price up to VND90,500 ($4.06) on July 12. An incident involving KSB’s Chairman, Mr. Vo Truong Thanh, then dragged the share price down to VND55,000 ($2.47) on August 15 and it now trades at VND70,500 ($3.17).

Mr. Thanh, founder of the Truong Thanh Furniture Company (TTF), was dismissed from his duties as Chairman of KSB’s Board on July 20 just three months after being elected. No reason for the dismissal has been disclosed. Mr. Thanh sold all of his 600,000 shares in KSB from June 30 to July 7.

KSB’s Dat Cuoc Industrial Zone project has completed all necessary procedures, including detailed planning and fundamental design and is currently in the process of negotiating site compensation of VND400 billion ($18 million) for the 136 ha area. As at July 30 it had attracted 40 projects on nearly 60 ha.

Another KSB project, the Binh Duc Tien residential zone on 2.6 ha with 68 apartments is expected to complete infrastructure investment this month. KSB revealed that revenue gained from project sales totaled VND132 billion ($5.9 million) with pre-tax profit estimated at nearly VND50 billion ($2.2 million). However, the revenue and efficiency of these two projects are not to be reported in the business plan for 2016 and will only be accounted for when sales are completed.

Over the next five years KSB will maximize productivity and efficiency at its existing stone pits and mineral mines. The company has set a target of revenue exceeding VND1 trillion ($44.8 million) in 2017 and continuing to increase in subsequent years.

User comment (0)

Send comment