28.4 C
Ho Chi Minh City
Wednesday, June 12, 2024

Louis Capital plans to acquire Nguyen Kim’s property company

The Saigon Times

Must read

HCMC – Louis Capital JSC (TGG) is planning to spend VND350 billion acquiring a 90% stake in Louis Mega Mall, a real estate company whose 99.45% of charter capital is owned by Nguyen Kim Group.

Louis Mega Mall, which was established two months ago, is managing Nguyen Kim trade centers. It has charter capital of VND181 billion. Besides the 99.45% held by Nguyen Kim, the remainder is being held by two individuals.

Speaking at a meeting on April 15, Nguyen Mai Long, chairman of Louis Capital, said the company would set aside VND1 trillion to fund a plan to develop the firm into a diversified business with acquisitions, mergers and financial investment being still its core operations.

The company has been in talks with Nguyen Kim Group to acquire its real estate products in prime locations in Dong Thap, Bac Lieu, Tra Vinh and Gia Lai provinces, Long added.

Explaining the decision to acquire shares of a real estate company and expand business to the trade center sector while many retail spaces have found it hard to find tenants after the pandemic, Long said he saw opportunities in such a difficult situation.

If the deal is successful, Louis Capital will rename Nguyen Kim’s trade centers. These properties can be exploited for different purposes, not only for leasing retail spaces.

This year, Louis Capital also plans to spend VND500 billion acquiring shares of an export firm.

On the other hand, the company will divest the entire 2.8 million shares, or 51% charter capital, at Sametel Corporation to provide capital for financial investment activities.

Louis Capital set a target to earn consolidated revenue of nearly VND1.1 trillion and after-tax profit of VND122 billion this year, up 34% and 33% over last year, respectively.

The company has also submitted a plan to triple its charter capital from VND273 billion to VND819 billion. Its assets are expected to surge 140% over late last year to reach VND2 trillion.

Closing the session today, April 15, TGG lost 6.9% at VND18,900.

The VN-Index of the HCMC stock exchange declined 13.56 points, or 0.92% over the session earlier at 1,458.56 points, with 145 winners and 321 losers. Trade volume rose 26% at nearly 659.5 million shares and value increased 17% at over VND21.7 trillion. Block deals contributed some VND825.45 billion to the overall stock trade value.

Meanwhile, the HNX-Index of the Hanoi exchange lost 6.97 points, or 1.65%, at 416.71. The bourse saw more than 69.31 million shares worth VND2.13 trillion change hands.

More articles


Please enter your comment!
Please enter your name here

Latest articles