Enterprises postpone dividend payments to participate in the construction of the Ho Chi Minh City - Trung Luong - My Thuan expressway

Trung Luong - My Thuan Expressway - Photo: QUANG DINH

In a recent announcement sent to the Securities Commission, Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) said that the general meeting of shareholders approved CII's investment in the project to expand the Ho Chi Minh City - Trung Luong - My Thuan expressway under the public-private partnership model.

According to CII, due to the urgency, the Government Office has issued a notice to the Ministry of Transport and relevant agencies to urgently start the project in the second quarter of 2025.

"To focus capital resources to prepare for bidding/investment in key national projects, CII's board of directors has approved the temporary suspension of dividend payments on the first day of the second quarter of 2025. The company representative affirmed that this dividend will be compensated in the following quarters.

Previously, CII submitted to shareholders for approval the 2024 cash dividend plan at a rate of 12% and expected to maintain this rate in 2025.

In the latest announcement, CII also said that it will implement a plan to issue shares to increase equity capital from owner's equity at a rate of 14% (bonus shares).

The time to implement the bonus stock issuance plan is immediately after completing the conversion of bonds into shares, expected on May 2, 2025.

Previously, the Ministry of Transport (now the Ministry of Construction ) approved the investment policy for the project to expand the Ho Chi Minh City - Trung Luong - My Thuan expressway under the public-private partnership (PPP) method with a total preliminary investment of about 39,800 billion VND.

The entire investment capital for the project is mobilized by the investor, without the participation of state capital. Of which, the owner's equity is about 5,970 billion VND (accounting for 15% of the total investment); loans and other legally mobilized capital sources are about 33,830 billion VND (accounting for 85% of the total investment).

The project is about 96km long, connecting the Mekong Delta with Ho Chi Minh City, Long Thanh airport and key seaports in the South. Preparation and investment time is from 2024-2028.

The project's proposed investor is a consortium of Deo Ca Group Joint Stock Company, Ho Chi Minh City Infrastructure Investment Joint Stock Company, Tasco Joint Stock Company, Hoang Long Construction Investment Corporation - JSC, and CII Service and Investment Company Limited.

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BINH KHANH

Source: https://tuoitre.vn/doanh-nghiep-hoan-tra-co-tuc-de-tham-gia-lam-cao-toc-tp-hcm-trung-luong-my-thuan-20250331102808325.htm