Mr. Nguyen Van Tuan: Gelex acquired state-owned enterprises in accordance with regulations

This morning, Gelex Group Joint Stock Company (GEX), one of the leading enterprises in industrial production and infrastructure development, held an online meeting of Shareholders. Shareholders pay attention to a variety of issues, from debt, bond issuance, business plan, to stock price story, M&A of state-owned enterprises.

Shareholders asked many questions to Mr. Tuan about the recent M&A activities of state-owned enterprises. The biggest mark for Gelex’s M&A activities in state-owned enterprises recorded in 2021 is the acquisition of Viglacera Corporation (VGC). Thanks to the consolidation of business results after this deal, Gelex exceeded the whole year plan with net revenue of more than 28,500 billion dong, pre-tax profit of more than 2,000 billion dong.

In response, CEO Nguyen Van Tuan confirmed that this company had auctioned, made a public offer to buy, and matched orders on the stock market in accordance with regulations.

This message is also CEO Gelex’s response to the bond issue. In 2021, Gelex issued two bonds, mobilizing VND 1,800 billion. According to Mr. Tuan, they issue bonds to large foreign financial institutions, domestic buyers are also large commercial banks such as MSB, Techcombank, “should fully comply with the provisions of law”.

This year, Gelex targets net revenue of VND 36,000 billion and profit before tax of VND 2,618 billion, up 26% and 27% respectively compared to 2021.

With industrial park real estate, Gelex said that it will continue to invest in technical infrastructure and services in industrial parks that are being deployed, prepare to invest in nearly 1,900 hectares of new projects and survey and research a number of projects. location to develop about 4,300 ha of industrial and urban complexes.

With the commercial real estate segment, Gelex will develop social housing, low-cost commercial real estate for low-income people, as well as continue to invest in existing real estate projects. Building materials segment will build brand strategy, reposition and develop, and continue to divest in some ineffective units.

Through its focal unit, Gelex Infrastructure, this group also plans to selectively develop and disburse investment in a number of wind and solar power projects, and seek M&A opportunities for renewable energy projects. As for the clean water segment, Gelex will continue to deploy the remaining items of phase 2 to increase the capacity of Song Da clean water plant, with the goal of taking over and putting it into use in the fourth quarter of 2024.

This year, Gelex plans to list or register for transactions for shares in Gelex Infrastructure and increase capital, register for listing of shares of Gelex Electric – the focal point of Gelex’s electrical equipment segment. In addition, the company will continue to M&A according to the growth strategy of core businesses.

When asked by shareholders about whether the company’s business is still growing but the stock price is continuously decreasing, Mr. Tuan said that Gelex currently has more than 56,000 shareholders, relatively large scale. The board and executive board are trying. To reassure shareholders, Mr. Tuan has registered to buy 10 million shares for the purpose of long-term investment.

Gelex, formerly known as Electrotechnical Equipment Corporation, was established in 1990 on the basis of concentrating production, sales, service and electrical engineering research units under the Ministry of Industry and Trade. At the end of 2015, the Ministry of Industry and Trade divested all 78.74% of Gelex’s capital through order matching transactions on the stock market, creating a historic trading session on UPCoM. Mr. Nguyen Van Tuan, CEO of Gelex, is one of Gelex’s largest shareholders after this divestment.

Minh Son