In a recent announcement, Thaco stated that the dividend distribution and capital increase will occur next month. The company will issue a three-for-one stock dividend, meaning shareholders will receive one new share for every three shares they own.
According to Thaco's leadership, this capital increase through dividend distribution aims to recognize and ensure shareholders' rights. It will also supplement financial resources to implement key investment projects, strengthening the foundation for Thaco's expansion strategy across industrial, agricultural, infrastructure, service, and logistics sectors.
Chairman of the Board of Directors Tran Ba Duong previously indicated that he and his family might reduce their ownership in Thaco to 51%. This reduction would be achieved through capital increases and share sales, with the proceeds used to arrange funding for the ambitious North-South high-speed railway project.
Thaco's proposal for the railway project estimates a total investment of 61,35 billion USD. The company plans to self-arrange 20% of this amount, equivalent to 12,27 billion USD. The remaining more than 49 billion USD is proposed to be sourced from domestic and foreign credit institutions, with a request for government guarantee and interest support over 30 years.
According to the latest data published in May this year, Tran Ba Duong and his family hold 72% of Thaco's capital. Jardine Matheson Group, a strategic shareholder for over 17 years, owns 26,6% of the capital. The remaining 1,4% belongs to the company's employees.
Thaco's last charter capital increase occurred in August 2020, rising from 16,950 billion dong to 30,510 billion dong. Mid-month, the company slightly reduced capital by about 120 billion dong by repurchasing employee stock ownership plan (ESOP) shares from certain employee shareholders. The board confirmed this adjustment does not impact business operations or the progress of ongoing projects.
Thaco, founded by Tran Ba Duong in 1997, began as a unit specializing in importing used vehicles and supplying automobile repair parts. It has since grown into a multi-industry enterprise with six core business segments: automobiles, mechanical - supporting industries, agriculture, investment - construction, trade - services, and logistics.
Automobiles remain Thaco's main revenue source. The company aims for this segment to generate 80,847 billion dong and exports to reach over 35 million USD this year. The mechanical and industrial segment is projected to contribute over 14,400 billion dong in revenue, while agriculture is expected to bring in 8,340 billion dong from fruit orchards, including bananas, durians, mangoes, and pomelos, as well as livestock. The trade services and logistics segments are anticipated to contribute approximately 6,810 billion dong and 5,400 billion dong in revenue, respectively.
In late August, Thaco underwent a significant senior personnel change when Pham Van Tai voluntarily resigned after seven years as general director. Tran Ba Duong concurrently assumed the position. The company also appointed three new deputy general directors, a chief financial officer, and a human resources director. The leadership stated that these appointments aim to streamline the executive apparatus, ensuring continuity and continuous innovation in governance.
The company previously emphasized its focus this year on balancing long-serving leaders and managers with a young, dynamic workforce to meet the trends of digital transformation and the digital economy.
Phuong Dong
