Chemical firm to issue bonds and shares for MA
Duc Giang-Lao Cai Chemicals JSC plans to issue convertible bonds and shares worth 833.8 billion VND (37 million USD) in 2017 to merge with Lao Cai Chemical Fertilisers JSC and Bao Thang Chemicals.
Illustrative image (Source: cafef.vn)Hanoi (VNA) - Duc Giang-Lao Cai Chemicals JSC plans to issue convertible bonds
and shares worth 833.8 billion VND (37 million USD) in 2017 to merge with Lao Cai
Chemical Fertilisers JSC and Bao Thang Chemicals.
The deal is expected to help Duc Giang Chemicals and Detergent Powder JSC, the parent company of the three chemical firms, move closer to the acquisition of the three firms.
This year, Duc Giang-Lao Cai Chemicals will offer three million convertible bonds to current shareholders of the three companies. The bonds have 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 shares of Duc Giang-Lao Cai Chemicals at a ratio of 1:10 (each bond is equal to 10 shares) when the bonds come to maturity.
On the maturity date, bond interest will be paid in cash and the deposit will be transformed into shares for shareholders.
If the conversion takes place after Duc Giang-Lao Cai is merged with Duc Giang Chemicals and Detergent Powder, the original bonds will be transformed into shares of the later firm at the converting rate between the two companies.
Total money raised from bond issuance will be used as a part of investment in a 2 trillion VND, 100M thermal power plant project.
In addition, Duc Giang-Lao Cai Chemicals will offer 53.3 million shares, worth 533.8 billion VND, to convert shares of Lao Cai Chemical Fertilisers and Bao Thang Chemicals into its shares.
Up to 68.3 percent of the shares will be issued for shareholders of Lao Cai Chemical Fertilisers to convert their shares into Duc Giang-Lao Cai Chemicals at a rate of 1:1, and the rest will be issued for shareholders to Bao Thang Chemicals at a conversion rate of 1:0.8.
After the bond and share issuance, new Duc Giang-Lao Cai Chemicals will be merged with Duc Giang Chemicals and Detergent Powder in the form of share conversion.
The M&A deal was approved by shareholders of Duc Giang Chemicals and Detergent Powder JSC at its annual shareholder meeting in April. The deal is expected to double the company’s chartered capital to 1 trillion VND.-VNA
The deal is expected to help Duc Giang Chemicals and Detergent Powder JSC, the parent company of the three chemical firms, move closer to the acquisition of the three firms.
This year, Duc Giang-Lao Cai Chemicals will offer three million convertible bonds to current shareholders of the three companies. The bonds have 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 shares of Duc Giang-Lao Cai Chemicals at a ratio of 1:10 (each bond is equal to 10 shares) when the bonds come to maturity.
On the maturity date, bond interest will be paid in cash and the deposit will be transformed into shares for shareholders.
If the conversion takes place after Duc Giang-Lao Cai is merged with Duc Giang Chemicals and Detergent Powder, the original bonds will be transformed into shares of the later firm at the converting rate between the two companies.
Total money raised from bond issuance will be used as a part of investment in a 2 trillion VND, 100M thermal power plant project.
In addition, Duc Giang-Lao Cai Chemicals will offer 53.3 million shares, worth 533.8 billion VND, to convert shares of Lao Cai Chemical Fertilisers and Bao Thang Chemicals into its shares.
Up to 68.3 percent of the shares will be issued for shareholders of Lao Cai Chemical Fertilisers to convert their shares into Duc Giang-Lao Cai Chemicals at a rate of 1:1, and the rest will be issued for shareholders to Bao Thang Chemicals at a conversion rate of 1:0.8.
After the bond and share issuance, new Duc Giang-Lao Cai Chemicals will be merged with Duc Giang Chemicals and Detergent Powder in the form of share conversion.
The M&A deal was approved by shareholders of Duc Giang Chemicals and Detergent Powder JSC at its annual shareholder meeting in April. The deal is expected to double the company’s chartered capital to 1 trillion VND.-VNA
You should also see
PM attends ceremony to start work on Him Lam resistance centre renovation project
Prime Minister Pham Minh Chinh on April 17 attended a ceremony to start work on a project to renovate Him Lam resistance centre, a part of the Dien Bien Phu complex of fortifications in the northern mountainous province of Dien Bien.
See more
Videos
Real estate market thrives, entities ready to re-enter market
The real estate market has witnessed positive developments, with a slew of projects, including billion-dollar projects, being announced and called for investment in the first quarter of 2024.
Business
Forum discusses support for women-owned firms to join supply chains
A forum on supporting women-owned businesses to join supply chains through sustainable development tools took place in Hanoi on April 17.
Business
Satisfaction of administrative services improves
Vietnamese citizens had greater satisfaction with the administrative services provided by State agencies last year, according to the Satisfaction Index of Public Administration Services (SIPAS) 2023 announced by the Ministry of Home Affairs (MoHA) on April 17.
Business
Petrol prices increase slightly on April 17
The retail prices of petrol were adjusted up from 3pm on April 17 by the Ministry of Industry and Trade and the Ministry of Finance.
Business
Central Highlands provinces seek closer trade, investment ties with India
A business and investment conference was held in Dak Lak province’s Buon Ma Thuot city on April 17 with the aim of enhancing connectivity between Indian firms and Central Highlands provinces.
