Illustrative image (Source:pjico.com.vn )
Samsung Fire & Marine Insurance Limited Company from South Korea to receive private placement as strategic investor.
The Petrolimex Insurance Joint Stock Company (Pjico, HSX stock code PGI) is planning a private placement of 17.7 million shares to the Samsung Fire & Marine Insurance Limited Company (SFMI) from South Korea.
Pjico expects to hold its annual general meeting (AGM) on April 26, with a range of important issues to be submitted.
The Board of Management has submitted a profit sharing plan, including 5 per cent of total profit, or nearly VND5.3 billion ($230,000) in compulsory reserves and 3 per cent of total profit, or VND3.2 billion ($140,000) in a development investment fund. The 2016 dividend payment is 11 per cent, or more than VND78 billion ($3.43 million).
Pjico targets total revenue of VND3.08 trillion ($135.4 million) in 2017, of which VND2.5 trillion ($109.9 million) will be new insurance premiums (excluding VND95 billion ($4.18 million) under the plan for fishing vessel insurance under Decree No.67/ND-CP), and pre-tax profit of VND140 billion ($230,000), with a dividend of no less than 10 per cent.
Its total premium revenue in 2016 stood at VND2.284 trillion ($100.4 million), of which VND1.097 trillion ($48.2 million) came from motor vehicle insurance, accounting for 44 per cent. Health insurance brought in nearly VND284 billion ($12.5 million), with student insurance of VND81 billion ($3.6 million). After-tax profit reached nearly VND106 billion ($4.7 million).
The Board of Management will also submit the plan to issue shares in the form of a private placement to increase charter capital and define how the capital will be used. It plans to issue 17.74 million new shares to SFMI as its strategic investor. The price has been authorized by the Board of Management and will not be lower than the recommended minimum price from the valuation report.
Capital from the offering will supplement business capital, enhance financial capacity, improve competitiveness, and increase the ability to retain premiums.