In early August 2020, Gia Lai Electricity JSC's Board of Directors approved the investment policy in two proje...
In early August 2020, Gia Lai Electricity JSC's Board of Directors approved the investment policy in two projects of Tan Phu Dong 1 wind power plant and Ia Bang 1 wind power plant, with the expected capacity scale respectively. 100 MW and 50 MW.
Gia Lai Electricity JSC (GEG) has just approved the policy of issuing bonds, the total mobilized value is about 200 billion in September 2020, by October 5, 2020, to meet the needs of production and project investment. In which, the bond has a maximum term of 2 years, the interest rate is 10.5%/year.
In addition, the Company also offered to sell nearly 51 million shares to existing shareholders, equivalent to the ratio of 4: 1 (shareholders owning 4 shares can buy 1 new share). Offering price is 10,000 VND/share. On the market, the market price of GEG shares is 18,200 VND/share. Thus, the asking price for existing shareholders is 45% lower than the market price.
The total proceeds from the issuance is expected to be nearly VND510 billion, which will be spent on investment or capital contribution to subsidiary companies implementing the company's renewable energy projects, investing in buying projects/houses. machinery and / or additional capital for production and business activities.
On the other hand, GEG also agreed to pay 2019 dividends in shares at the rate of 8%. With the number of outstanding shares of nearly 204 million units, the number of GEG shares issued to pay dividends is 16 million units, the total value of the issue at par value is more than 163 billion. The paid capital is taken from the undistributed remaining profit which is allowed to divide at the end of 2019. The issue of shares to pay dividends in order to retain profit for reinvestment, so no increase in capital flow arises.
Also this year, GEG will privately sell 27.12 million shares to domestic and foreign institutional and individual investors (which may include one or several existing shareholders of GEG). Generally, after 3 shares issuance, GEG's chartered capital will increase by more than VND944 billion, from VND2,039 billion to nearly VND2,983 billion.
In 2020, GEG has approved a business plan with a consolidated revenue target of nearly 1,531 billion VND in 2020, an increase of 51% compared to the plan in 2019. The target of consolidated pre-tax profit is VND320 billion, increasing 33% of the plan in 2019 and strive to reach about VND350 billion. Expected dividend rate is 8%.
In particular, GEC plans to transfer the building at 189 Pham Van Dong, Thua Thien Hue at the price of not less than VND20 billion and also transfer all the capital contribution at Thuong Lo Hydropower Plant at no lower price of VND100 billion, agreed to sell cluster of 4 factories in Chu Prong with the minimum price of VND165 billion, to sell the shares of Kenh Bac Ayun Ha Hydropower (GBC).
In contrast, at the beginning of August 2020, the Board of Directors of the Company approved the investment policy in two projects of Tan Phu Dong 1 wind power plant and Ia Bang 1 wind power plant, with the expected capacity scale respectively 100 MW and 50 MW.
At the end of the first half of the year, GEG's net profit decreased 8% year-on-year, to more than VND125 billion, due to prolonged heat, which led to a significant decrease in hydropower revenue compared to the same period.
Via CafeF