June 28th, the Extraordinary General Meeting of Transport and Industry Development Investment TRACODI (HOSE: TCD) approved the BOD members additional election, issuing bonds, issuing ESOPs and adding business sectors.
Accordingly, shareholders approved the addition of Mr. Lin Kuo Wei, a Taiwanese national (Director of DWS Star Bridge Limited Liability Company) to the position of Board Member. Currently, Lin Kuo Wei and the organization are not holding any TCD shares
Picture – Mr.Lin Kuo Wei (the 3rd from the left) with TCD’s directords at the Extraordinary General Meeting
However, according to the TCD board's management, Lin Kuo Wei will be the supervisor of the board at first, supporting the company's business. Moreover, the organization is also interested in Vietnam's infrastructure projects, thus, posibly they will cooperate with TCD in real estate infrastructure in the near future, as TCD soon will work on BT projects (builiding infrastructure to exchange land with total area of nearly 300 hectares in Long An that suitable for residential construction). To invest in this project, TCD will negotiate with partners (including strategic partners) to issue bonds.
More detail, the shareholders also approved the plan to issue up to 1,000 billion VND or $50 million of bonds or convertible bonds to raising capital for implementing projects, working capital for business or refinancing loans for company's projects. Bond interest rate up to 5% for USD loan and 12% for VND. Bonds’ term from 3 to 5 years. After 3 years, the bondholders are entitled to convert with the price of not less than 15,000 VND/share.
Additionally, TCD also issued 1.2 million shares of ESOP at the price of 10,000 VND/share. The number of ESOP shares for the period 2018-2020 will be decided by the BOD so as to ensure that the total number of issued shares does not exceed 5% of the outstanding shares.
Moreover, another issue is, Taxi Vietnam Limited (Vinataxi) - Tracodi joint venture with ComfortDelgro with 30% contribution - plans to organize advertising services on the vehicle body. However, according to Vietnam's WTO commitments, a foreign-invested company is permitted to provide advertising services in Vietnam in the form of a joint venture with a Vietnamese partner in the advertising industry. So Tracodi will also add advertising sector. Vinataxi has more than 500 cars, expects the proportion of advertising sales will contribute 5-10% into revenue structure, said representatives of TCD. At the same time, exclude HCMC market, Vinataxi is planning to develop in neighboring cities such as Vung Tau and Tien Giang.
About the business results in the first 6 months of 2017, TCD board responsed, with the whole year plan of 900 billion dong of revenue and 62 billion dong of profit, it is likely that TCD surpass the target. The company is striving to be capable of paying dividend of more than the approved rate of 10%.
Source: http://vietstock.vn/2017/06/dhdcd-bat-thuong-tcd-giam-doc-dws-star-bridg...