Phát Đạt Real Estate Development Corporation has recently approved a plan to divest all of its stake in BIDICI Real Estate Investment JSC.

 

Phát Đạt currently holds over 111.7 million BIDICI shares, representing a 49 per cent ownership in the company's VNĐ360 billion (US$14.1 million) charter capital. 

 

The par value of this stake amounts to over VNĐ1.1 trillion.

 

It plans to execute the divestment at a price no lower than 130 per cent of par value, which corresponds to a minimum expected proceeds of over VNĐ1.4 trillion for the company.

 

The property developer stated the additional capital injection into BIDICI was to meet equity requirements for an investment project in a high-rise residential area in Nhơn Hội, Bình Định Province - a key central region project PDR has been developing since 2019. 

 

Last year, Phát Đạt recorded abnormal gains from capital divestments in Astral City and industrial parks, supporting its profitability. However excluding these, it may have incurred significant annual net losses, according to BIDV Securities Company (BSC).

 

BIDV Securities Company (BSC) believes 2024 will reach an inflection point for Phát Đạt, as it restructures its finances and business model.

 

The company will shift away from a multi-industry conglomerate, divesting its industrial park segment to focus on commercial real estate within its ecosystem.

 

On the stock market, Phát Đạt shares increased 0.41 per cent from the previous session to close Monday at VNĐ24,200 a share. — VNS

 

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