On November 29, An Phat Holdings JSC (HOSE: APH) held an Extraordinary General Meeting of Shareholders 2022 keo ty le Hai Duong Province.
Accordingly, the Board of Directors has submitted to shareholders for approval the plan to issue ordinary shares to convert dividend preference shares, redeem and convert into issued common shares of An Phat Holdings keo ty le 2018 keo ty le case the preferred shareholder exercises the right to convert. keo ty le addition, the meeting also proposed the plan to buy back the preferred shares if the shareholders request.
According to the voting results with 99.84% consensus rate, the General Meeting of Shareholders approved both options mentioned above. keo ty le addition, the General Meeting of Shareholders also agreed to authorize the Board of Directors to decide to implement either or both above options, based on the choice and/or request of the preferred shareholder, keo ty le compliance with the provisions of the Company, applicable laws, agreements with preferred shareholders and the interests of the company.
keo ty le 2018, APH issued 14,114,880 preferred shares with an initial issue price of VND25,000/share to foreign investors. Accordingly, shareholders who own preferred shares which do not include voting will have priority over a company’s income. They are entitled to convert preferred shares into common shares. Besides, they also have the right to request the company to return their contributed capital according to the agreed terms and conditions.
keo ty le December 2020, 6.8 million preferred shares were converted to common shares with a 1:1 conversion ratio, the conversion price was VND 25,000/share. As a result, APH currently has 7,314,880 preferred shares outstanding.
It is expected that if preferred shareholders exercise the right to convert, APH will issue common shares according to the plan presented at the General Meeting of Shareholders. Accordingly, APH will issue a maximum of 11,035,664 ordinary shares, equivalent to a conversion price of VND 16,571/share and a conversion ratio of 1:1.508659707. Prices and conversion rates are adjusted for dilution of shares from the company’s previous issues. Share repurchases will take place when the proposal is approved by the General Meeting of Shareholders and the authorities. The capital used is from the capital contribution of preferred shares and capital surplus from the issuance of preferred shares.
keo ty le case preferred shareholders request the company to buy back, APH is expected to buy back up to 7,314,880 preferred shares outstanding. This aims to return the preferred shareholder’s capital contribution at the request of the preferred shareholder. The redemption price is granted by the company with preferred shareholders, at least equal to the initial issue price of 25,000 VND/share and maximum not exceeding 32,500 VND/share, based on changes keo ty le exchange rates and the agreement between the investors and the company regarding anti-dilution clause. The acquisition period is expected to take place keo ty le February 2023. It is anticipated that APH’s charter capital will decrease to VND 2,439 billion if the firm decides to repurchase all the above preference shares
Currently, An Phat Holdings has a charter capital of 2,512 billion VND, with 17 subsidiaries operating keo ty le high-tech and eco-friendly plastics, industrial real estate and logistics. keo ty le terms of business situation, keo ty le the first 9 months of 2022, An Phat Holdings’ revenue reached VND 13,326 billion, up 30% compared to the same period last year, mainly due to the increase keo ty le plastic resin price keo ty le the first half of 2022, leading to the increase keo ty le sales of plastic resins keo ty le the first half of 2022. Revenue from the raw material and plastic resin segment grew sharply.
