Ho Chi Minh City-based asset management firm VinaCapital has become a major shareholder of Vietnam's leading developer Cotec Construction (Coteccons) after purchasing 100,000 shares of the company.
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Coteccons' share value stood at VND142,000 (US$6.17) per share on July 3, so VinaCapital is believed to have spent VND14 billion (US$608,300) on this deal.
VinaCapital's decision has caught market attention, following its recent divestments in a series of companies, such as the selling of 332,600 Tasco shares, 7.82 million shares of entertainment group Yeah1, and 420,000 FPT Retail shares.
Meanwhile, Coteccons' shares have been on the decline recently. At the close on July 5, its shares declined 2.09% to VND135,600 (US$5.89) apiece. At this price, Coteccons' shares have lost 13% in over a month, 11% within a quarter and 36% in a year.
At the company's 2018 annual general meeting, Coteccons proposed merging Coteccons and its subsidiaries, including Ricons Construction Investment. Nguyen Ba Duong, chairman of Coteccons, expected the merger would increase the company's revenue to US$3 billion by 2020.
In addition to VinaCapital, Coteccons currently has four other major shareholders, including KUSTOSHEM with 17.76%, Thanh Cong Business and Investment Company (14.3%), FICO Investment and Building Materials Trading Company (5.99%), and Indochina Land (5.11%).
Duong holds a 4.89% stake in the company, equivalent to over 3.8 million shares.
The company set modest targets for 2018 with revenue of VND27.2 trillion (US$1.18 billion), up 0.17% year-on-year, and after-tax profit of VND1.4 trillion (US$60.8 million), down 15.29% year-on-year.
