Vinatex wants to divest from a garment company with double the market value

Vietnam Textile and Garment Group (Vinatex) decided to divest all of its capital contribution at May Binh Minh with a starting price of VND43,700 per BMG share, while the market price of this share on the UPCoM floor is at VND20,300.

According to the recently announced resolution of the Board of Directors, Vietnam National Textile and Garment Group (Vinatex) will sell all 1.3 million shares, equivalent to 25% of the charter capital it holds at Binh Minh Garment Joint Stock Company (stock code: BMG). The transaction is expected to take place immediately after the State Securities Commission approves the dossier.

These 1.3 million shares will be offered in the form of public auction with a starting price of 43,700 VND per share. This price is twice as high as the current trading price of May Binh Minh shares on the stock exchange of 20,300 VND. Vinatex is expected to earn about 58 billion VND from this divestment deal.

Binh Minh Garment is currently trading on the UPCoM market with a total of 5.29 million shares. Liquidity is sluggish as the average of the last 10 sessions recorded only 20 shares changing hands per session. After Vinatex announced the divestment information, BMG immediately made waves when the market price increased 5.7% compared to the reference price and matched 1,600 shares.

This year, May Binh Minh set a revenue target of 320 billion VND, pre-tax profit of 14 billion VND and dividend of 15%. The revenue plan is slightly higher than last year's 300 billion VND, while pre-tax profit is down from 16 billion VND. The company currently has total assets of about 170 billion VND.

In addition to May Binh Minh, Vinatex plans to divest capital from 7 other units this year, including Nam Dinh Silk Textile Joint Stock Company, Vinatex Da Nang Joint Stock Company, Nam Dinh Garment Joint Stock Company, Dong Nai Garment Corporation Joint Stock Company, Nha Be Corporation, Tan Chau Export Garment Company Limited and Textile Production - Import - Export Joint Stock Company.

According to the plan submitted to the shareholders' meeting, Vinatex set a target of VND17,900 billion in consolidated revenue and VND550 billion in profit this year, a slight increase over the same period. The company expects the cash dividend in 2023 to be 3% of charter capital, equivalent to VND150 billion.

In the first quarter, the company recorded net revenue of VND3,956 billion, down 6% year-on-year. Pre-tax profit reached VND102 billion and after-tax profit reached VND72 billion, down 22% and 14% year-on-year, respectively.

Total assets as of the end of the first quarter reached VND18,853 billion, a slight decrease compared to VND19,076 billion at the beginning of the year. Liabilities were about VND9,640 billion, most of which were short-term debts.

Source: https://baodautu.vn/vinatex-muon-thoai-von-mot-cong-ty-may-gap-doi-thi-gia-d220256.html