GELEX ELECTRIC INCREASES CHARTER CAPITAL FROM 368 BILLION TO VND 2,218 BILLION.
In order to implement a comprehensive restructuring strategy, especially for the traditional and key business of Electrical Equipment, GELEX Corporation has focused its subsidiaries in the field of electrical equipment. GELEX ELECTRIC (GELEX ELECTRIC). This focus makes GELEX convenient to manage and increase the efficiency of production and business activities in the field of electrical equipment through:
(a) personnel optimization,
(b) centralized procurement across the system,
(c) expand customers across subsidiaries' distribution network, sell more products to one customer,
(d) focus on research and development of large-scale new products.
The increase in capital was made through transferring ownership of all of GELEX's shares in subsidiaries including Vietnam Electric Wire and Cable Joint Stock Company (Cadivi, HOSE: CAV), Electrical Equipment Joint Stock Company (THIBIDI, HOSE: THI) and Hanoi Electromechanical Manufacturing Joint Stock Company (UPCoM: HEM) transferred to GELEX ELECTRIC with the book value recorded as of December 31, 2017 on GELEX's 2017 audited financial statements.
In addition, GELEX also contributed additional capital in cash worth nearly VND 19 billion.
Including cash and the entire share book owned in subsidiaries, GELEX has contributed more than 1,850 billion (calculated on the book value) to GELEX ELECTRIC, thereby increasing the charter capital of GELEX ELECTRIC from 368 billion. to VND 2,218 billion.
The ownership ratio of GELEX at GELEX ELECTRIC after raising capital is 100%.
