Jul 09, 2018 / 15:07

MB Capital becomes major shareholder of Vietnam Electrical Equipment

MB Capital is believed to have spent VND410 billion (US$17.88 million) on this deal.

Vietnam-based MB Capital Management (MB Capital) successfully purchased 24.8 million shares of Vietnam Electrical Equipment (Gelex), becoming the latter's major shareholder, according to a filing to the Ho Chi Minh Stock Exchange (HoSE). 
Illustration photo.
Illustration photo.
After the transaction completed on June 28, MB Capital increased its holding at Gelex from 3.34 million shares or 0.99% of the latter's charter capital to 28.1 million shares or 8.31%.

For an offering price of VND16,600 (US$0.72) apiece with total of 72 million shares on offer, MB Capital is believed to have spent VND410 billion (US$17.88 million) on this deal.  

Additionally, VietinBank Capital also purchased 21.6 million Gelex shares, increasing its stake in the firm to 7.41%. 

On June 22, Dragon Capital acquired 813,110 shares, increasing the investment fund's holding at Gelex to 5.05%. 

By the middle of 2017, Gelex's charter capital has increased 13 times to VND2.32 trillion (US$101.1 billion) since its equitization in 2010, announced the company on its website.

The annual growth rate of the company has reached 12% - 16%, setting momentum for the new development phase with the expected revenue of over USD1 billion by 2020, it added.

According to its consolidated financial statement released in the first quarter, the company's after-tax profit reached VND382 billion (US$16.6 million), down 38.72% year-on-year to VND242 billion (US$10.55 million).