GMC to cancel 50b dong bond issuance plan

The management board of Saigon Garment Manufacturing Trade Joint Stock Co (coded GMC) announced to propose the plan of cancelling the issuance of convertible bonds worth 50 billion dong on March 31, 2011 due to unstable economic and financial conditions. The company will seek shareholders’ opinions in document for continuing to issue the bonds.



Last year, GMC had signed the contract with consultancy agent for issuing the fore-mentioned bonds. However, up to November 2010 the company could not realise the plan because of the instability in world economy.



Initially, GMC planned to issue the convertible bonds in order to raise investment capital for 213 Le Hong Phong project, Dist 6, HCM City. But this project’s ground-breaking date has been changed to 2013.



In addition, the company’s management board has also submitted the 2011 business plan in the annual shareholders meeting with targeted revenue of 700 billion dong, after tax profit of 40 billion dong and dividend payment at 20 percent.



In 2010, GMC reported gaining total revenue of 631 billion dong, and pre-tax profit of 40 billion dong, surpassing by 38 percent and 33 percent respectively against the year plan. The company will pay 2010 dividend at 20 percent, of which 10 percent was paid previously.



The company planned to close the shareholders list on April 8 for second round dividend.

Tags: Vietnam companies

Posted by VBN on Mar 25 2011. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry