In the afternoon of October 12th, DIC Group (HoSE: DIG) successfully held an Extraordinary General Meeting 2022. At the end of the meeting, all proposals were approved with a voting rate of over 99%.
Photo 1: Overview of the Extraordinary General Meeting taking place on October 12th 2022.
AGREE ON THE PLAN TO OFFER UP TO 100 MILLION SHARES AT A PRICE OF 15,000 VND PER SHARE
Based on the development strategy of the organization and actual stock market situation, the Board of Directors of DIC Group has brought the plan to issue shares to existing shareholders to the table.
Henceforth, the shareholders have reached an agreement to offer up to 100 million shares at a price of 15,000 VND per share. The total value of mobilized capital is expected to be up to 1,500 billion VND. Right issue’s rate for existing shareholders would be 1000:163.97. The implementation time is expected to be from the fourth quarter of 2022 to the first quarter of 2023. All proceeds from the offering will be used to invest in the Long Tan tourist urban area project (Nhon Trach district, Dong Nai province).
Photo 2: Mr. Nguyen Thien Tuan – The Chairman of DIC Group speaking at the event.
Charter capital is expected to increase after the issuance from 6,099 billion VND to 7,099 billion VND. Mr. Nguyen Thien Tuan – Chairman of DIC Group emphasized: "The growth in charter capital helps DIC Group improve its financial capacity, opens up many development opportunities in business activities, affirming the sustainable development of the organization. From there, establishing trust with our shareholders and partners. In addition, the capital increase will create reciprocal capital for other loans and mobilization when investing in Long Tan Tourist Urban Area – a key project in the period of 2022 – 2025".
APPROVAL FOR ADJUSTMENT IN LONG TAN TOURISM URBAN AREA PROJECT
For the Long Tan tourist urban area project (Scale: 332ha), DIC Group is focusing its resources on implementing investment preparation, compensation and site clearance.
The project has now completed legal procedures for investment preparation. The progress of site clearance compensation has reached 156.15ha / 332ha with a total budget of 1,324 billion VND. It is expected that in early 2023, 82.1ha land will be allocated to commence construction for the first phase.
Photo 3: Mr. Hoang Van Tang – General Director of DIC Group shared the latest information about the production and business situation at the meeting.
Regarding the reasons for reviewing and adjusting some project contents, a representative of DIC Group said: "During the process of implementing the project, due to many fluctuations in the market as well as the orientation of socio-economic development in the locality, leading to some rising costs such as: The cost of site clearance compensation; charged for land use; embankment design costs. At the same time, learn from the difficulties in other projects of DIC group such as: Confirmation of technical infrastructure, social infrastructure; procedures for granting land use right certificates; capital raising; transfer parts of the project...".
The General Meeting has passed the plan to adjust the total investment of the project. Thereby, the total investment after tax of the project would be 15,712 billion VND; project’s capital and mobilized capital would be 5,478 billion VND; the enterprises’ owned capital and other legal mobilization would be 9,541 billion VND.
In addition, this project is also divided into five subdivisions: subdivision One: 82.1ha; subdivision Two: 65.7ha; subdivision Three: 49.07ha; subdivision Four: 69.1ha; subdivision Five: 65.9ha. It is expected to complete the investment in construction of all technical infrastructure in the fourth quarter of 2028.
In 2022, DIC Group is determined to implement a production and business plan with a target profit of 1,900 billion VND. In particular, the main sources of profit come from two groups: mergers and acquisitions projects with over 1,000 billion VND and trading products in projects that are eligible for sales.
At the meeting, Mr. Nguyen Thien Tuan – Chairman of DIC Group shared: "With legal works being pushed in M&A and self-trading real estate products sector, the actual basis of business deployment and debt recovery, contingency plans to avoid risks, we believe that DIC Group will complete the production and business plan assigned by our shareholders".
At the end of the meeting, all proposals were approved with a voting rate of over 99%.
Some photos taken at the event:
Photo 4: Mr. Nguyen Quang Tin – Deputy General Director of DIC Group reports on the adjustment plan to issue shares to existing shareholders.
Photo 5: Mr. Bui Van Su - Chief Accountant of DIC Group reported on the issuance and use of bond capital and shares to increase charter capital.
Photo 6: Mr. Tran Van Dat – Permanent Deputy General Director reports on the proposal to adjust the construction of Long Tan tourist urban area.