Truong Thanh Furniture Corporation (TTF) announced that it has completed divestment from its subsidiary company, Truong Thanh Wood Industry JSC (TTI). According to a filing to the HCM Stock Exchange on Tuesday, Truong Thanh Furniture sold its entire holding of nearly 1.26 million shares, an equivalent of 68.52 per cent of TTI’s charter capital. The identity of the buyer has not been disclosed.
The divestment is part of the company’s streamlining plan with the aim of downsizing its subsidiary and affiliate companies. According to the company’s second-quarter report, it has 12 subsidiaries with ownership of over 50 per cent in each company and two indirect subsidiary firms.
Late in September, the State Securities Commission approved the company’s plan for a private placement of 100 million shares at the price of VND10,000 a share. After the issue, expected this month, its charter capital will reach nearly VND2.45 trillion.
As of the end of June, Truong Thanh Furniture reported cumulative losses of over VND1.4 trillion.