MB Capital becomes major shareholder of Gelex

08:00 | 14/07/2018
MB Capital is estimated to have spent VND410 billion ($18 million) on a deal to increase its holdings at Gelex.
mb capital becomes major shareholder of gelex
MB Capital increased its holdings in Gelex to 8.31 per cent

According to the Ho Chi Minh City Stock Exchange (HSX), MB Capital Management (MB Capital) successfully purchased 24.8 million shares of Vietnam Electrical Equipment JSC (Gelex).

After the transaction was completed on June 28, MB Capital increased its holdings at Gelex from 3.34 million shares (equivalent to 0.99 per cent of the charter capital) to 28.1 million shares (8.31 per cent).

At the offering price of VND16,600 ($0.72) per share, MB Capital has spent an estimated VND410 billion ($18 million) on the deal.

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

Earlier, on June 22, Dragon Capital acquired 813,110 shares, increasing the investment fund's holding in Gelex to 5.05 per cent.

By the middle of 2017, Gelex's charter capital had increased 13-fold to VND2.32 trillion ($101.3 billion) since its equitisation in 2010. The annual growth rate of the company reached 12-16 per cent, setting momentum for a new development phase.

According to Gelex’s financial statement, its total consolidated net revenue in 2017 hit VND11.98 trillion ($528 million), up 64.2 per cent year-on-year, and consolidated after-tax profit reached VND1.3 trillion ($58 million), exceeding the yearly plan by 25.2 per cent. The parent company’s total net revenue was VND2.216 trillion ($97.6 million) and its after-tax profit was VND369 billion ($16.26 million), up 21 per cent year-on-year.

In 2018, Gelex targets VND15 trillion ($661 million) in total consolidated revenue and VND1.82 trillion ($80.2 million) in consolidated pre-tax profit.

By Nguyen Huong

Based on MasterCMS Ultimate Edition Ver 2.8 2018