Mr. Tran Ba Duong, Chairman of the Board of Directors of Truong Hai Group Corporation ( THACO ), has just sent a letter to shareholders, partners, officers and employees, sharing about the investment proposal for the North-South High-Speed Railway Project.
The letter emphasizes THACO's sense of responsibility and determination in participating in this national key project, with a total investment of about 61.35 billion USD (excluding site clearance costs).
The National Assembly has approved the North-South high-speed railway project (illustrative photo - VGP)
The North-South High-Speed Railway Project has a total investment capital approved by the National Assembly of VND1,562,000 billion (equivalent to USD61.35 billion), excluding site clearance costs. In the proposal document, this figure is also VND1,562,000 billion.
Regarding the investment plan, THACO proposed to establish a project implementation company in which the group holds at least 51% of the shares. This company will be primarily responsible for the management, implementation and operation of the project in a unified manner. Domestic private enterprises and state-owned enterprises will be invited to contribute up to 49% of the capital, with the principle that all shareholders have obligations and rights according to the proportion of shares owned.
Regarding capital allocation, investment enterprises account for 20%, equivalent to about VND312,000 billion (USD12.27 billion). Of which, THACO is responsible for arranging VND159,120 billion (USD6.26 billion).
The remaining 80% of the total investment capital is borrowed capital from domestic and foreign credit institutions. This capital will be guaranteed by the Government and supported with interest rates within 30 years, after which the investor will be responsible for repayment according to the signed financial plan.
THACO's Chu Lai Port
THACO proposed that more than half of the project's investment value be disbursed within 7 years, from the time the state hands over the clean site.
THACO commits not to use loans (accounting for 80% of total investment capital) guaranteed by the state and supported by interest rates for other purposes.
THACO said it will be responsible for arranging and mobilizing an average of VND22,730 billion/year (equivalent to USD860.8 million) in the first 7 years (from 2027)...
THACO is owned by Mr. Tran Ba Duong and his family with 72% of capital. Jardine Matheson Group is a strategic shareholder, owning 26.6% of capital. The remaining 1.4% belongs to other shareholders who are officers and employees.
Regarding the capital structure change plan, THACO and Mr. Tran Ba Duong's family will increase capital and sell shares in member corporations so that THACO holds 51% of capital.
THACO will increase capital to allow Jardine Cycle & Carriage Limited to buy shares at a price equal to 20 times THACO's consolidated profit in 2027.
Mr. Tran Ba Duong emphasized that the North-South high-speed railway project is a large and complex project, requiring high technology, safety and large investment capital. THACO proposed that the Government consider implementing this project with the highest capacity and level, demonstrating efforts and determination to contribute to the country. THACO is committed to implementing the project seriously, ensuring efficiency and compliance with legal regulations.
THACO's debt-to-equity structure by the first quarter of 2025 is 2.54 times, which is considered safe in the context that most real estate is recorded at a lower book value than the market. In addition, thanks to the support policies of the Government and Ho Chi Minh City, the payment of BT debt with land fund (about 7,600 billion VND) is also being implemented.
Meanwhile, THACO AGRI has been profitable and is expected to achieve significant profits by 2027. THACO's automotive segment maintains stable revenue and profits despite fierce market competition...
Source: https://nld.com.vn/chu-tich-thaco-noi-ve-de-xuat-lam-duong-sat-toc-do-cao-bac-nam-196250530181947796.htm
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