Illustrative image (Source: cafef.vn) Hanoi (VNA) - Duc Giang-Lao Cai Chemicals JSC plans to issue convertible bondsand shares worth 833.8 billion VND (37 million USD) in 2017 to merge with Lao CaiChemical Fertilisers JSC and Bao Thang Chemicals.
The deal is expected to help Duc Giang Chemicals andDetergent Powder JSC, the parent company of the three chemical firms, movecloser to the acquisition of the three firms.
This year, Duc Giang-Lao Cai Chemicals will offer threemillion convertible bonds to current shareholders of the three companies. The bondshave a par value of 100,000 VND, an annual yield rate of 2 percent and a maturity rate of two years.
Shareholders will be able to convert those bonds into sharesof Duc Giang-Lao Cai Chemicals at a ratio of 1:10 (each bond is equal to 10shares) when the bonds come to maturity.
On the maturity date, bond interest will be paid in cash andthe deposit will be transformed into shares for shareholders.
If the conversion takes place after Duc Giang-Lao Cai ismerged with Duc Giang Chemicals and Detergent Powder, the original bonds willbe transformed into shares of the later firm at the converting rate between thetwo companies.
Total money raised from bond issuance will be used as a partof investment in a 2 trillion VND, 100M thermal power plant project.
In addition, Duc Giang-Lao Cai Chemicals will offer 53.3million shares, worth 533.8 billion VND, to convert shares of Lao Cai ChemicalFertilisers and Bao Thang Chemicals into its shares.
Up to 68.3 percent of the shares will be issued forshareholders of Lao Cai Chemical Fertilisers to convert their shares into DucGiang-Lao Cai Chemicals at a rate of 1:1, and the rest will be issued forshareholders to Bao Thang Chemicals at a conversion rate of 1:0.8.
After the bond and share issuance, new Duc Giang-Lao Cai Chemicalswill be merged with Duc Giang Chemicals and Detergent Powder in the form ofshare conversion.
The M&A deal was approved by shareholders of Duc GiangChemicals and Detergent Powder JSC at its annual shareholder meeting in April.The deal is expected to double the company’s chartered capital to 1 trillionVND.-VNA
The deal is expected to help Duc Giang Chemicals andDetergent Powder JSC, the parent company of the three chemical firms, movecloser to the acquisition of the three firms.
This year, Duc Giang-Lao Cai Chemicals will offer threemillion convertible bonds to current shareholders of the three companies. The bondshave a par value of 100,000 VND, an annual yield rate of 2 percent and a maturity rate of two years.
Shareholders will be able to convert those bonds into sharesof Duc Giang-Lao Cai Chemicals at a ratio of 1:10 (each bond is equal to 10shares) when the bonds come to maturity.
On the maturity date, bond interest will be paid in cash andthe deposit will be transformed into shares for shareholders.
If the conversion takes place after Duc Giang-Lao Cai ismerged with Duc Giang Chemicals and Detergent Powder, the original bonds willbe transformed into shares of the later firm at the converting rate between thetwo companies.
Total money raised from bond issuance will be used as a partof investment in a 2 trillion VND, 100M thermal power plant project.
In addition, Duc Giang-Lao Cai Chemicals will offer 53.3million shares, worth 533.8 billion VND, to convert shares of Lao Cai ChemicalFertilisers and Bao Thang Chemicals into its shares.
Up to 68.3 percent of the shares will be issued forshareholders of Lao Cai Chemical Fertilisers to convert their shares into DucGiang-Lao Cai Chemicals at a rate of 1:1, and the rest will be issued forshareholders to Bao Thang Chemicals at a conversion rate of 1:0.8.
After the bond and share issuance, new Duc Giang-Lao Cai Chemicalswill be merged with Duc Giang Chemicals and Detergent Powder in the form ofshare conversion.
The M&A deal was approved by shareholders of Duc GiangChemicals and Detergent Powder JSC at its annual shareholder meeting in April.The deal is expected to double the company’s chartered capital to 1 trillionVND.-VNA
VNA
