Truong Thanh Furniture Corporation (HoSE: TTF) would acquire Thien Thanh Sanitaryware JSC tomorrow to avoid the risk of cumulative losses outpacing charter capital, *****.vn reported. After the merger, Truong Thanh Furniture will take over the business activities of Thien Thanh Sanitaryware JSC.
The acquisition was approved at the formers extraordinary shareholder meeting in late October 2018. At another extraordinary shareholder meeting the following month, shareholders in Truong Thanh approved a plan to issue 96.6 million shares to swap for Thien Thanh shares at a rate of 8.21 to 1.
The deal will increase the furniture firms charter capital to VND3.15 trillion (US$135.4 million) and the amount of shares issued for swapping will account for 46.6 per cent of the firms total.
The post-acquisition firm targets VND253 billion in revenue for 2019 and VND12.8 billion in post-tax profit.
Truong Thanh Furniture in 2018 recorded VND1.03 trillion in total revenue and a loss of VND344 billion. In 2017, the company earned VND276 billion in profit.