Three more investors poured VND252 billion into Sai Gon Kim Cuong Joint Stock Co (OTC: SGDiamond). With the new shareholder structure, SJC Tower project has finished after more than 10 years late appointment?
Change in shareholder structure
On July 31st, Saigon Kim Cuong Board of Directors approved to issue 121.38 million shares to existing shareholders at the price of VND10,000 / share to increase its charter capital to VND1,800 billion (more than triple the capital). initial charter). The purpose of this issuance is to add capital to invest in building SJC Tower (SJC Tower).
With the right allocation ratio of 1: 2,070,762 (shareholders holding 1 share are entitled to 1 right of purchase, 1 right to purchase 2,070,762 additional shares), the State Finance Investment Company . Ho Chi Minh City (HFIC) – one of the three major shareholders of Sai Gon Kim Cuong – allocated more than 23.44 million shares to buy shares in this new issuance.
However, Ho Chi Minh City has a policy to reduce the ownership in Saigon Kim Cuong to 25%, HFIC retained only 10.4 million purchase rights (equivalent to 21.55 million shares).
The remaining 13 million options (equivalent to 27 million shares, equivalent to 15% chartered capital – VND1,800 billion) were auctioned. The starting price is 4,620 VND / purchase rights.
There were nine investors registered to buy a total of nearly 40 million purchase rights, or three times the amount put up for auction; of which 7 individuals and 2 organizations are in the country.
Recently, HoSE announced that there are 3 investors including one institutional investor and two individual investors who have won the auction. Accordingly, the highest successful bid price is VND 25,010 / call option, the lowest bid price is VND 14,490 / call option, the average winning price is VND 19,350 per call option, up to 4.2 times of the bid price. Total winning value reached over VND252 billion.
As a result, as of now, the shareholder structure of Sai Gon Kim Cuong has changed considerably thanks to the participation of 3 new investors.
Founded in October 2007, Sai Gon Kim Cuong Joint Stock Company has founding shareholders including Saigon Jewelry Company, Hung Vuong Corporation, Kinh Do Corporation and Co., Ltd. Dong A Bank Securities. However, these shareholders later transferred the capital contributions to other partners.
At the time before auction, Sai Gon Kim Cuong has chartered capital of over 586 billion dong, of which HFIC holds 40% (VND234.4 billion , equivalent to 23.44 million shares). The other two major shareholders are Saigon Star Real Estate and Infrastructure Investment and Development JSC and VIPD Real Estate and Infrastructure Development JSC. were 42% and 18%.
VIPD has its predecessor, Phu Vinh Real Estate Company, which was established in 2008 with the purpose of implementing Binh Thoi Apartment Building (Ward 14, District 11, HCMC). At the end of 2008, 90% of Phu Vinh’s equity was owned by An Phu Joint Stock Company. However, in April 2011, An Phu sold its entire stake in Phu Vinh to another local investor.
Two years later, Phu Vinh was renamed VIPD and increased charter capital to 15 times (from VND400 billion to nearly VND6,000 billion, after another increase to VND12,000 billion). VIPD has spent nearly VND10 trillion to buy Vincom Center A on Nguyen Hue from Vingroup. This commercial center was later renamed Union Square and is widely known as one of the five buildings of Van Thinh Phat Group in Ho Chi Minh City.
The Saigon Star Company is also believed to be involved in the Van Thinh Phat system, as it is the largest shareholder in New Life Real Estate Co Ltd, which bought Duxton Saigon Hotel on Nguyen Hue Street for $ 49.24 million in Q1 / 2016.
Thus, Van Thinh Phat has dominated 60% Sai Gon Kim Cuong Joint Stock Company, 25% belongs to HFIC, 15% belongs to 3 new investors. Although not disclosed identity but not exclude the possibility, 3 new investors appear also have links with Van Thinh Phat.
Project SJC Tower ever on purpose?
Sai Gon Kim Cuong Joint Stock Company is the investor of SJC Tower project located in Le Thanh Ton quadrangle – Nam Ky Khoi Nghia – Le Loi – Nguyen Trung Truc, District 1, Ho Chi Minh City. The project has total investment of $ 137 million, scale of 6 basements and 54 floors.
According to the information disclosure of HFIC, the land area of SJC Tower project area is 3791.7sqm, the land use term until 2057, the state lease land paid annually. Investors do not have to pay land rent for 9 years or 10 months due to the conversion of land compensation costs by more than VND 212 billion from 26 January 2011, the rest must pay land rent 36 years 11 months left since December 2019.
This is a complex that functions as a commercial center, office and luxury apartment for rent, hotel restaurant and services.
This project has completed legal procedures for land lease, planning architecture, elevation certification, granting land use certificates.
This project has completed legal procedures for land lease, architectural planning, certification of elevation, granting land use certificate 2011-2012 period. However, over 10 years, the project is still “real estate war”.
At the beginning of December 2016, Van Thinh Phat Group held the groundbreaking ceremony, but after the ceremony, the project did not have any new developments. The market is expecting a triple increase in capital and a change in shareholder structure, SJC Tower will have a clear future in the future.
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