SaigonTel to buy 30% Saigon Postel stake

A shareholders meeting of Saigon Telecommunication and Technologies Corp (SGT) has just approved the company’s plan to buy nearly 36 million shares, or a 30 per cent stake, of Saigon Post and Telecommunications Services Corp (Saigon Postel).

If the deal is completed, SGT – a member of Saigon Invest Group – will become the largest shareholder of Saigon Postel, owner of the mobile service provider S-Fone, and join their boards of directors and management.

SGT said Saigon Postel’s current projects required advanced technology, and strong financial and implementation capacities. As a major shareholder, SGT would provide necessary resources for those projects, which would benefit both companies in the long term.

Late last year, Saigon Postel had planned to issue over 49.2 million shares privately to a strategic partner for VND15,000 (US$0.72) per share in order to raise its charter capital from VND712 billion ($34.2 million) to VND1.2 trillion ($57.6 million).

Cancelled listing

SGT also decided to cancel its share listing on the HCM City Stock Exchange in the coming time. The management board will make a decision on the number and value of the shares the company will buy back, creating favourable conditions for shareholders, who do not wish to participate in its restructuring, to sell their holdings.

“SGT will enter a strong restructuring period… with asset value increasing many times that of the charter capital. In order to ensure the success of its restructuring, SGT needs to cancel its listing,” SGT wrote in a file to the State Securities Commission.

They said the stock market was an effective channel for companies to mobilise capital, but recently, almost no company has issued securities successfully due to unfavourable market conditions.

SGT closed down 1.4 per cent yesterday to VND7,100.

Earlier, Sai Gon-Quy Nhon Mining Corp (SQC) – whose chairwoman Dang Thi Hoang Phuong is a sister of SGT’s chairman Dang Thanh Tam – also announced it would cancel its share listing on the Ha Noi Stock Exchange. — VNS

Tags: Saigon Postel, SaigonTel