DIG: Information on a Private Placement

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VietStock FI English - 102 month(s) ago 5 readings

The Board of Directors of Development Investment Joint Stock Corporation (DIG: DIC Corp.) has approved the documents to ballot shareholders on increase in the charter capital from VND600 billion to VND700 billion through a private placement of 10,000,000 common shares. Time of implement: expected in Quarter IV/2009.

Capital Increase Plan

I. Issue plan:

- Offering volume: 10,000,000 shares

- Stock type: common stock

- Par value: VND10,000/share

- Offering method: issue 10,000,000 shares privately to investors at an offering price (or auction price) not less than VND100,000/share.

- Offering time: expected in Quarter IV/2009

- Total shares after the issuance: 70,000,000 shares

- Charter capital after the issuance: VND700,000,000,000.

II. Plan of using the capital increased from the offering:

The funds achieved from the offering is mainly invested in projects:

- Dai Phuoc Urban Area in Nhon Trach, Dong Nai: VND600 billion

- Nam Vinh Yen Urban Area in Vinh Phuc: VND300 billion

- Lakeside Senior Apartment Building: VND100 billion

III. Benefit of the issuance:

1. Benefit to the State shareholder:

- After the offering is successful, DIC Corp hopes to gain a surplus worth VND900 billion.Therefore, the State’s investment in DIC Corp will increase by VND585.52 billion from VND390.35 billion at present to VND975.87 billion (= VND390.35 billion + [VND900 billion x 65%]).

2. Benefit to the Corporation:

- The debt of DIC Corp at present is VND280 billion. If the Corporation do not make a private placement, it will have to borrow from VND1,000 billion to VND1,200 billion for projects.

- Decreasing interest expense, increasing profit for the Corporation; ensuring financial balance, reducing financial risks because of heavy dependence on bank loans; and strengthening the company’s financial ability.

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