Elcom to hike chartered capital to 325b dong in 2010

The Electronics Communications Technology Investment Development Joint Stock Co (Elcom) held its annual shareholders meeting on May 11, 2010. In the meeting, the participants approved the proposals of paying 2009 dividend at 55 percent and increasing chartered capital from 177 billion dong to 325 billion dong.

The company’s shareholders passed the plan of 2009 dividend payment at ratio of 55 percent, in which 30 percent will be paid in cash and the rest 25 percent in shares. That means on the date of closing the shareholders list, each shareholder who owns four old shares will receive one new share.

Elcom also planned to raise its chartered capital to 325 billion dong in 2010 in three phases.

In the first phase, the company’s chartered capital will be increased to 221 billion dong through the third phase of 2009 dividend payment at ratio of 25 percent in shares.

In the second phase, the company will offer 6,637,500 shares for existing shareholders at ratio of 30 percent at price of 10,000 dong per share. There will be 537,500 shares valued at 5.375 billion dong to be offered for the current employees at price of 10,000 dong per share.

After the two phases, Elcom expects to raise total capital of 71.75 billion dong in order to supplement working capital and to carry out large contracts with mobile subscribers.

In the third phase, the chartered capital will be increased to 325 billion dong via offering 3.2 million shares to strategic shareholders at negotiable price but no less than 43,800 dong per shares. These are transfer-limited shares for one year.
Elcom will select at 10 individual or corporate at maximum as strategic partners. The company planned to gain 140.16 billion dong to participate in projects of developing telecommunication infrastructure facilities with the mobile network providers.
Phan Chien Thang, Elcom’s chair of management board cum general director said the company planned to develop Elcom model with two subsidiaries of E-Soft and Elcom Industry to produce key products to the market in order to contribute large revenue and profit for the general company from 2011 onwards.

As for the real estate projects, the company planned to carry out construction projects on a complex of offices, apartments, villas, trading services, green park and other functional facilities and towers of offices for lease and apartments.

Last year, Elcom reported gaining total revenue of 706 billion dong, after tax profit of 90.173 billion dong and EPS of 9,115 dong.

The company expected to officially list shares on southern bourse in Q2 of 2010.

Tags: Elcom, Vietnam IT