DIG: Information on a Private Placement
The Board of Directors of Development Investment Joint Stock Corporation (DIG: DIC Corp.) has approved the documents to ballot shareholders on increase in the charter capital from VND600 billion to VND700 billion through a private placement of 10,000,000 common shares. Time of implement: expected in Quarter IV/2009.
Capital Increase Plan
I. Issue plan:
- Offering volume: 10,000,000 shares
- Stock type: common stock
- Par value: VND10,000/share
- Offering method: issue 10,000,000 shares privately to investors at an offering price (or auction price) not less than VND100,000/share.
- Offering time: expected in Quarter IV/2009
- Total shares after the issuance: 70,000,000 shares
- Charter capital after the issuance: VND700,000,000,000.
II. Plan of using the capital increased from the offering:
The funds achieved from the offering is mainly invested in projects:
- Dai Phuoc Urban Area in Nhon Trach, Dong Nai: VND600 billion
- Nam Vinh Yen Urban Area in Vinh Phuc: VND300 billion
- Lakeside Senior Apartment Building: VND100 billion
III. Benefit of the issuance:
1. Benefit to the State shareholder:
- After the offering is successful, DIC Corp hopes to gain a surplus worth VND900 billion.Therefore, the State’s investment in DIC Corp will increase by VND585.52 billion from VND390.35 billion at present to VND975.87 billion (= VND390.35 billion + [VND900 billion x 65%]).
2. Benefit to the Corporation:
- The debt of DIC Corp at present is VND280 billion. If the Corporation do not make a private placement, it will have to borrow from VND1,000 billion to VND1,200 billion for projects.
- Decreasing interest expense, increasing profit for the Corporation; ensuring financial balance, reducing financial risks because of heavy dependence on bank loans; and strengthening the company’s financial ability.
hose
|