The plan of issuing 67.3 million shares to existing shareholders, issuing ESOP shares, dividends scheme and increasing charter capital to VND 1,080 billion (USD 48.21 million) has been approved by Bamboo Capital Join Stock Company (ticker“ BCG”) general shareholder meeting.

With shareholders’ written consent, BCG announced its resolution of general shareholders which approves the company’s new shares issuance to existing shareholders, employees and paying dividends by shares plan.   

The general shareholder has approved a plan to increase charter capital as follows:

Selling additional shares to existing shareholders

Bamboo Capital plans to issue 61.05 million of additional shares at offering price of VND 12,000 per share to existing shareholders with execution rate 1:1.5 (existing shareholders holding 01 share is eligible to purchase additional 1.5 share). BCG share is currently traded at VND 20,000 to VND 22,000 per share.

Remaining shares which have not been purchased by existing shareholders will be offered to investors with offering price no less than price offered to existing shareholders. Approximately 

VND 732 billion (USD 32.68 million) which will be collected from this additional share issuance will be invested in subsidiaries, affiliated companies and M&A activities in automobile  manufacturing industry, agricultural goods processing and trading, coffee exporting and cattle breeding industry.

Employee Stock Ownership Plan 

Bamboo Capital plans to issue 3 million of ESOP shares at offering price of VND 12,000 per share to its key personnel. These shares are restricted and may not be transferred in a period of 2 years. The amount to be collected from this share issuance will be  used as additional fund for business operation.

Paying dividend by shares

Bamboo Capital plans to pay dividend by shares at 8% by issuing 3,256,000 new shares to existing shareholders once the company received its 2015 audited financial report. Issue capital is derived from undistributed capital gains recorded in reviewed 2015 financial report.
In conclusion, the total addition shares Bamboo Capital plans to issue are more than  67.3 million, which means charter capital will increase from VND 407 billion (USD 18.17 milliong) to VND1,080 Trillion (USD 48.21 milion), 2.65 times larger than its current charter capital.

Mai Nguyen