CII failed to hold the General Meeting of Shareholders again despite giving money to shareholders attending.
This morning, September 19, 2023, the Extraordinary General Meeting of Shareholders of Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) was held. Due to concerns that not enough shareholders would attend, the company's board of directors announced that they would send cash gifts of gratitude to shareholders who attended in person or authorized others to attend the meeting.
However, the result was that the number of shareholders attending the meeting this morning was only over 200 people, equivalent to about 31% of the voting shares. Thus, the 2023 extraordinary shareholders' meeting of CII failed due to the inability to convene enough voting shares to hold.
CII gives money, shareholders still do not attend the general meeting (Photo TL)
This is not the first time CII has proposed a plan to give money to invite shareholders to attend the meeting but still failed. In April 2023, CII also held the 2023 Annual General Meeting of Shareholders and promised to give money to shareholders attending. However, the meeting was still unsuccessful because only 45.76% of the total number of voting shares attended. The reason is that the number of small shareholders is too large, causing the shares to be dispersed and difficult to convene.
In this extraordinary general meeting of shareholders, CII plans to submit to shareholders for approval the strategic development orientation for the period 2024-2030. In which, CII is allowed to allocate budget to research BOT projects and other transport infrastructure projects.
CII borrowed 13,000 billion, paid 4 billion VND in interest every day, where did it get the money to do 6 BOT projects worth 75,000 billion VND?
One of the notable contents in this extraordinary General Meeting of Shareholders is that CII is researching and implementing 6 BOT projects with a total value of up to 75,000 billion VND.
The projects include: Ho Chi Minh City - Trung Luong - My Thuan Expressway Phase 2 with VND 22,000 billion; Improving traffic capacity in the Northwest area of Ho Chi Minh City with VND 19,059 billion; Upgrading and expanding National Highway 1A from Tan Kien intersection to Long An border with VND 11,982 billion; Project to improve traffic capacity along Pham Van Dong - Nguyen Xi - Ung Van Khiem - Nguyen Huu Canh route with VND 10,108 billion; Upgrading and expanding North-South axis project from Nguyen Van Linh to Ben Luc Long Thanh Expressway with VND 6,625 billion; Upgrading and expanding the connecting route of Ho Chi Minh City - Trung Luong Expressway with VND 5,048 billion.
6 BOT projects with a total investment of 75,000 billion VND that CII is researching despite still having a debt of 13,000 billion VND (Documents of the 2023 Extraordinary General Meeting of Shareholders of CII)
It is worth mentioning that this plan of CII was made in the context of the business situation of the unit having many problems. Especially the situation of escalating debt accompanied by huge interest payments.
By the end of the second quarter, CII's total assets reached VND26,649.2 billion, down 6.7% compared to the beginning of the year. Of which, CII's debt structure accounted for a relatively large proportion. Short-term debt increased from VND5,166.4 billion to VND6,039.4 billion. Thus, short-term debt increased by VND615.6 billion in just the first 6 months of the year.
Long-term debt also accounts for VND 7,112.3 billion in CII's assets. CII's total debt is VND 13,151. billion. If compared to equity, it can be seen that these debts are 62.2% higher than equity.
With debt accounting for a large proportion of its assets, it is not difficult to understand why CII has to pay hundreds of billions in interest each quarter. In the second quarter alone, CII's interest expense amounted to VND363.3 billion, equivalent to VND4 billion in interest each day, not to mention other expenses.
With a debt of 13,000 billion and such a large amount of interest expense, is it too risky for CII to want to "shoulder" 6 more BOT projects with a total value of 75,000 billion VND? Where will CII get the money to carry out such large projects?
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