Bamboo Capital chairman to sell BCG Land shares to invest in energy projects

Nguyen Ho Nam, chairman of Bamboo Capital Group JSC, will transfer 20 million personally owned shares in BCG Land, a real estate subsidiary of Bamboo Capital, to invest in the group's renewable energy projects, BCG Land announced on Friday.

Bamboo Capital is listed on the Ho Chi Minh Stock Exchange (HoSE) as BCG and BCG Land is registered on the Unlisted Public Companies Market (UPCoM) as BCR.

The transfer will be conducted from January 11 to February 10, 2024 via the throughput method. Closing the Friday session, BCR stood at VND8,100 ($0.33) per share. However, the agreed transfer price has not been revealed yet.

In addition to being BCG chairman, Nguyen Ho Nam is also chairman of BCG Energy Joint Stock Company - another member company of Bamboo Capital Group operating in the field of renewable energy.

Identifying the potential and opportunities in the renewable energy sector, since its establishment in 2017, BCG Energy has continuously built and put into operation large-scale solar power plants and developed rooftop solar power systems in provinces and cities across the country.

In addition to the total capacity of nearly 600 MW in operational projects, BCG Energy is developing 229 MW and planning an additional 670 MW in the near future. Currently, it is promoting wind power development and targeting other types of energy such as gas-fueled power and biomass power.

To develop the above portfolio, with the approval of the National Power Development Plan VIII with specific mechanisms to be issued soon, BCG Energy needs to quickly make financial preparations.

In particular, BCG Energy is promoting investment in waste-to-power plants in major cities, so it is expected that capital demand will increase in 2024. As the real estate market has not recovered and renewable energy is facing many great opportunities, this investment of the BCG chairman aims to balance the potential of the ecosystem and supplement capital for BCG Energy to seize these opportunities, thereby creating a good foundation for other segments to develop when the market recovers.

The number of BCG Land shares held by Nguyen Ho Nam before the transaction was 20 million BCR shares, equivalent to 4.35% of BCG Land's charter capital. If the transaction is successful, Nam will no longer be an individual shareholder in BCG Land. However, he is still the representative of Bamboo Capital's capital contribution at BCG Land.

Bamboo Capital now holds 285.64 million BCR shares, or 62.1% of BCG Land’s charter capital. Another subsidiary of Bamboo Capital, Tracodi (HoSE: TCD), also owns 43.4 million BCR shares, equivalent to 9.43%. Bamboo Capital still holds a voting rate of over 65% through related individuals and organizations, ensuring the operation of BCG Land in accordance with the group’s general development strategy and orientation.

BCG Land is a property company established in 2018 with an initial charter capital of VND600 billion ($24.62 million). After four capital increases, the company's current charter capital is VND4.6 trillion ($188.76 million). BCR shares have been traded on the UPCoM since December 8, 2023.

In the first nine months of 2023, BCG Land recorded net revenue of VND583 billion ($23.92 million) and net profit of VND100 billion ($4.1 million), relatively positive results in the context of the quiet real estate market.

Currently, BCG Land is implementing a series of high-end real estate projects like Malibu Hoi An and Hoian d'Or in the central province of Quang Nam, and King Crown Infinity in Ho Chi Minh City’s Thu Duc city.

On the stock market, BCG closed Friday at VND8.340 ($0.34) and BCR at VND8,100.