Ho Chi Minh City Infrastructure Investment Joint Stock Company (HoSE: CII) has just successfully purchased 5 million NBB shares from Nam Bay Bay Investment Joint Stock Company, thereby increasing its ownership ratio in this enterprise from 54.5% to 59.5%. With the purchase price of VND25,488/share, it is estimated that CII has to spend about VND127 billion for the above transaction.
In early July, CII increased its ownership ratio of Nam Bay Bay from 50.31% to 54.53%. Previously, in March 2024, the company said it was planning to increase its ownership ratio at Nam Bay Bay to 79.8%, thereby expanding its real estate segment and accessing ongoing projects.
Of which, the two projects Nam Bay Bay 2 with an area of nearly 8 hectares, total investment capital of more than 2,400 billion VND and Nam Bay Bay 3 with an area of 5.27 hectares with an investment capital of more than 2,700 billion VND of Nam Bay Bay currently have a part of residential land and other land, so there are many opportunities to be approved for investment in commercial housing projects according to the provisions of the Land Law 2024 that has just taken effect.
In addition, the De Lagi residential area (Binh Thuan) of Nam Bay Bay, in June 2024, was handed over 67.45 hectares of land by the People's Committee of Binh Thuan province to carry out infrastructure construction on this land at the De Lagi residential area project. This project has a scale of 124.5 hectares with a total investment of more than 2,700 billion VND.
Notably, in early October, CII received the decision approving the investment policy and approving the investor for a real estate project in the West of Ho Chi Minh City. This project has a scale of 5.2 hectares with a total estimated investment capital of VND 4,478 billion. After completion, it is expected to supply the market with more than 2,100 products of apartments, townhouses, and shophouses.
Regarding infrastructure investment, at the end of August, CII approved a plan to invest in a new project with a total investment of more than VND1,118 billion. However, the company did not disclose detailed information about the project.
Previously, at the 2024 Annual General Meeting of Shareholders in May, the company's leaders said that the company was in the process of negotiating to buy 100% of a BOT project with an investment of about 1.6 trillion VND, expected to be completed by the end of June and early July 2024.
With strong investment in a series of new projects, to restructure capital sources, CII had to adjust the dividend payment time to reserve capital for project investment and pay off maturing bonds.
According to information released on September 26, CII said that due to some important matters in the fourth quarter of 2024, one of the Company's member units may receive approval for investment policy for a real estate project with a total investment of nearly VND 5,000 billion with a scale of 2,160 apartments and shophouses; 81 townhouses; and other amenities.
In addition, on October 21, 2024, CII will have bonds coded CIIB2124002 maturing with a face value of VND 500 billion. The company must make every effort to avoid late payment of principal and interest on due bonds.
Therefore, to focus capital on real estate project investment and payment of maturing bonds, the company will move the dividend payment time to shareholders on the first day of the fourth quarter of 2024 to the following quarters and increase the dividend payment rate in the following periods to a higher rate of 4% (to compensate for the dividend payment rate in the fourth quarter of 2024 that has not been implemented).
