Vinatex wants to divest its stake in a garment company worth double its market value.

Vietnam Textile and Garment Group (Vinatex) has decided to divest its entire stake in Binh Minh Garment Company at a starting price of 43,700 VND per BMG share, while the current market price of this stock on the UPCoM exchange is 20,300 VND.

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

These 1.3 million shares will be offered for sale through a public auction with a starting price of 43,700 VND per share. This price is double the current trading price of May Binh Minh shares on the stock exchange, which is 20,300 VND. Vinatex is expected to earn approximately 58 billion VND from this divestment transaction.

Binh Minh Garment Company (BMG) is currently trading on the UPCoM market with a total of 5.29 million shares. Liquidity is weak, with an average of only 20 shares changing hands per session over the last 10 trading days. After Vinatex announced its divestment, BMG immediately surged, with its share price increasing by 5.7% compared to the reference price and 1,600 shares traded.

This year, May Binh Minh aims for revenue of 320 billion VND, pre-tax profit of 14 billion VND, and a dividend payout of 15%. The revenue target is slightly higher than last year's 300 billion VND, while pre-tax profit is projected to decline from 16 billion VND. The company currently has total assets of approximately 170 billion VND.

Besides Binh Minh Garment Company, Vinatex plans to divest its stake in seven 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 and Garment Production - Import and Export Joint Stock Company.

According to the plan presented to the shareholders' meeting, Vinatex aims for consolidated revenue of VND 17,900 billion and profit of VND 550 billion this year, a slight increase compared to the same period last year. The company expects a cash dividend of 3% of charter capital, equivalent to VND 150 billion, for 2023.

In the first quarter of the year, the company recorded net revenue of VND 3,956 billion, a decrease of 6% compared to the same period last year. Pre-tax profit reached VND 102 billion and after- tax profit reached VND 72 billion, decreasing by 22% and 14% respectively compared to the same period.

Total assets at the end of the first quarter reached VND 18,853 billion, a slight decrease compared to VND 19,076 billion at the beginning of the year. Liabilities amounted to approximately VND 9,640 billion, the majority of which were short-term liabilities.

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