REE raises chartered capital to 2.527tr dong from converting bonds into shares

The southern bourse-listed Refrigeration Electrical Engineering Joint Stock Co (coded REE) announced to submit in the annual shareholders meeting held on March 31 for approval about converting bonds into shares in order to raise chartered capital to over 2.527 trillion dong.



In details, the company has already issued 810,418 convertible bonds with face value of 1 million dong per bond, gaining total amount of 810.41 billion dong.



These bonds will be converted into shares after 12 months from the date of issue of August 2, 2010 with coupon rate of 8 percent per year. The expected converting price would be 13,810 dong per share, or one bond will be converted into 72 shares.



However, on February 17, the company had closed the shareholders list for paying coupon for the at ratio of 16 percent. The management board suggested the converting price should be adjusted in accordance with the dividend ratio of 16 percent.



Therefore, the converting price would be applied at 12,210 dong or one bond for 82 shares.



If getting approval, REE’s management board will choose the suitable time for converting bonds into shares and hike chartered capital from 1.862 trillion dong to 2.527 trillion dong. At the same time, the company will list 66,454,276 converted shares in the stock market.



Last year, the company reported gaining net revenue of 1.807 trillion dong, up 54 percent against that of 2009. However, the after tax profit was posted at 362.31 billion dong, declining by 16 percent year-on-year.

Tags: Vietnam business

Posted by VBN on Mar 29 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