FLC Group and KLF on lookout for strategic investors

October 19, 2017 | 14:38
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Property developer FLC Group has sought its shareholders’ approval to put 149.5 million shares on sale for a strategic investor.
FLC and KLF are both looking for strategic investors

Accordingly, FLC and enterprises who intend to become FLC’s strategic investor will negotiate about the buying price. FLC expects to earn at least VND1.49 trillion ($65.5 million) from the sale.

The transaction will be implemented after receiving approval from the State Securities Commission of Vietnam (SSC). Once the sale is completed, FLC’s chartered capital will increase to VND7.87 trillion ($346.1 million) from the current VND6.38 trillion ($280.5 million).

After the sale, FLC will spend VND600 billion ($26.4 million) of the proceeds developing an apartment, office, and shopping centre complex at 265 Cau Giay Street in Hanoi.

Besides, FLC will pour an additional VND600 billion ($26.4 million) into its FLC Halong resort complex in Halong city of the northern province of Quang Ninh. The 224-hectare project, which has a total investment capital of VND3.4 trillion ($149.5 million), covers a total area of 224 hectares in Hong Ha ward in the city. The resort includes an 18-hole golf course, a 1,300-seat international conference centre, a 600-room five-star hotel, a club, an amusement park, villas, and synchronous transportation network.

According to the latest movements, KLF Global JSC, a member company of FLC, is also seeking shareholders’ approval to issue 98 million shares to increase its chartered capital to VND2.63 trillion ($115.6 million) from the current VND1.65 trillion ($72.5 million).

Accordingly, KLF will offer 53 million shares for strategic investors at the price of VND10,000 ($0.44) apiece. These shares will not be transferable to other partners within one year of the sale. The sale will be implemented after receiving approval from SSC.

The remaining 45 million shares will be offered to existing shareholders with the initial price not less than VND10,000 ($0.44) per share. KLF expects to complete the sale of these 45 million shares in 2017.

After completing the sale of 98 million shares, KLF will spend VND300 billion ($13.2 million) acquiring FLC’s projects in Sam Son city of the central province of Thanh Hoa, and the remaining money will be used for other investment activities.

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By By Ha Vy

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