LOUIS CAPITAL ADJUSTED TO 300 BILLION VND
After joining Louis Holding, Louis Capital has increased its 2021 business target dramatically compared to the original plan. Simultaneously, in order to implement M&A deals in the coming time and target to own 35% of APG Securities, the Company also adjusted its capital increasing plan up to 300 billion VND
On September 6th morning, Louis Capital Joint Stock Company (stock code TGG) held an extraordinary General Meeting of Shareholders and approved many important contents such as the sudden increasing adjustment for 2021 plan, the issuing plan to raise capital, and the investment in other related companies…
In term of business plan, shareholders of Louis Capital approved the adjustment of revenue target to increase 5 times, from 70 billion to 350 billion VND. The corresponding pre-tax profit increases from 2 billion to 50 billion VND.
This move comes after Louis Capital officially changed owner and joined Louis Holdings ecosystem. Although specializes in construction and installation of civil and infrastructure works, Louis Capital is oriented to expand into consulting and M&A investment activities.
In parallel, the extraordinary General Meeting also approved the plan to offer maximum 30 million shares, instead of separately issuing 28 million shares to shareholders at the end of June. The offering price is 15,000 VND/share, lower than the current market price of 35,300 VND/share. Shares offered for sale will be restricted from being transferred within 1 year. After being approved by SSC, the implementation period will be in this year.
If the offer succeeds, the charter capital is expected to double to nearly 573 billion VND. The amount collected is about 450 billion VND. Louis Capital plans to spend 200 billion VND to buy shares of APG Securities; 100 billion VND to contribute capital to Louis AMC Asset Management and Exploitation JSC; and the rest 150 billion VND to invest in Ao Gioi Suoi Tien tourism resort project.
Moreover, shareholders of Louis Capital also accepted to spend 105 billion VND for the plan of purchasing 10.5 million transferred shares, equivalent to 95.5% of capital at Golden Paddy JSC. This action is to invest and operate a system of rice factories in western provinces. The Company simultaneously plans to spend 67 billion VND to buy more than 460m2 of house and land at 678 Kinh Duong Vuong, An Lac ward, Binh Tan district, Ho Chi Minh City for business investment.
During the discussion, many questions were raised by shareholders to the Company’s management, notably:
Whether the stock price truly reflect the value of the company or not?
Said Mr. Do Thanh Nhan: Louis Capital is an investment company, which uses finance to invest in other companies to own the core business and existing assets of those firms. Therefore, the value of TGG shares is reflected in the quality of companies in which Louis Capital has invested.
Recently, the Louis Holdings ecosystem with Louis Capital (TGG) as the nucleus of investment activities has been actively implementing M&A deals to expand into promisingly potential fields such as Real Estate with Louis Land (BII code); Energy, Telecommunications with Sametel (code SMT); Securities with APG Securities Company (code APG); Agriculture with Angimex (code AGM) and Louis Rice brand.