Industrial park giant Sonadezi plans to divest from subsidiaries

Dong Nai province-based industrial park developer Sonadezi has announced its intention to divest capital from member companies as part of its restructuring plan for the 2021-2025 period.

In its proposal to shareholders, Sonadezi, registered on the Unlisted Public Companies Market (UPCoM) as SNZ, wants to divest capital from six subsidiaries, including Sonadezi Giang Dien JSC (46.45%), Sonadezi Long Thanh JSC (52.75%), Sonadezi Chau Duc JSC (46.84%), Sonadezi Long Binh JSC (46.22%), Industrial Urban Development JSC No. 2 (57.86%), and Sonadezi Binh Thuan JSC (42%).

Sonadezi's stake will decrease to 46% for companies that own industrial parks with an occupancy rate of less than 70%, and 36% for those with an occupancy rate of 70% or higher.

Its ownership ratio will be brought down from the current 52.59% to 36% at Dong Nai Material & Building Investment Joint Stock Company (DND).

Sonadezi leaders also proposed divesting completely from Dong Nai Construction JSC, Dong Nai Paint Corporation, Dong Nai – No.1 Civil and Industrial Construction JSC, Urban Joint Stock Company, Amata City Bien Hoa JSC, and Dong Nai Transportation Construction JSC.

The company plans to retain its ownership ratios in the remaining businesses in its investment portfolio.

According to Sonadezi's board of directors, the valuation of the corporation is complicated because it owns many subsidiaries and affiliated companies with large areas of land.

In addition, it can take months for competent authorities to approve the valuation, while the cycle for finalizing financial reports is only six months.

Therefore, the company proposed speeding up the divestment process and shortening the consideration time by competent authorities.

Also according to the restructuring plan, in 2024, Sonadezi aims to achieve consolidated revenue of VND6.1 trillion ($248.4 million), after-tax profit of VND1.1 trillion ($44.8 million), and return on equity (ROE) of 12.75%. The respective figures for 2025 are VND6.3 trillion, VND1.15 trillion and 12.9%.

On December 15, 1990, Sonadezi's predecessor, state-owned Bien Hoa Industrial Park Development Company, was established. On February 1, 2016, the company was equitized and renamed Sonadezi Corporation. On November 20, 2017, Sonadezi was officially listed on the UPCoM as SNZ.

Currently, Sonadezi has charter capital of VND3.76 trillion ($153 million), owns 16 member companies operating in industrial park and civil real estate development, construction and building materials, support services, and water supply.

On the stock market, SNZ closed Monday at VND28,200 ($1.15), down 0.35% from the previous session.