Thuduc House sells stakes in divestment spree

By Hai Yen   June 18, 2021 | 04:35 pm PT
Thuduc House sells stakes in divestment spree
A project of Thuduc House. Photo courtesy of the company.
Housing development corporation Thuduc House has sold stakes in three companies, and registered to divest from two others over the last six months.

The HCMC-based firm announced that it would sell over 16 million shares, or 43 percent of the stake it currently holds in the Foreign Trade Development & Investment Corporation of Ho Chi Minh City (Fideco).

It said it hopes for a selling price of at least VND12,000 ($0.52) per share for a turnover of around VND200 billion. Fideco shares have been traded on the local bourse at prices of VND11,500-13,000 in the last two months.

A few days earlier, Thuduc House registered to transfer all of its stake in the Golden Lotus Securities Company (GLS) for VND5,000 per share. A sale of over three million GLS shares will fetch the corporation around VND15 billion.

Earlier, the property developer had sold all its entire stake in three local firms of the Tam Binh Thu Duc Service Limited Company, the Song HyGia Lai Limited Company, and the VicoQuang Tri Investment & Mineral Joint Stock Company.

Thuduc House’s rapid disinvestment follows the company being ordered in late 2020 to pay VND396 billion in tax arrears for VAT refunds and late payment. The collection of tax arrears saw the real estate developer report a loss of VND310 billion last year, the biggest loss in its 30-year operation.

Le Chi Hieu, Thuduc House chairman, said the corporation has this year prioritized restructuring its affiliates, reorganizing its apparatus, selling stakes in poorly performing companies, and focusing on spearhead sectors like real estate and auxiliaries.

The company’s financial report for the first quarter of this year shows sales falling to VND320 billion ($13.9 million), but managing to earn after-tax profits of VND28 billion.

According to the company, it has carried out more than 40 real estate projects in HCMC, Hanoi, Hue, Da Lat and Long An, and in the U.S. state of California.

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