With its subsidiary – Cuu Long Pharmaceutical Joint Stock Company (DCL), which issued 20 million USD of convertible bonds to South Korea’s Rhinos Asset Management (RAM), F.I.T Group (F.I.T Group) is gradually harvesting the achievements of the process of restructuring and professionalism in the operation.

Dual benefits from Rhinos bonds

Under the detailed plan of bond issuance approved by DCL’s Board of Directors, a 20 million USD bond will be sold to Rhinos in a five-year maturity, with the interest of 1% per year in USD. Bonds can be converted after the first year, with a conversion price of 25,000 VND per diluted share.

With this option, the first thing that investors can see is attractive interest rates for DCL compared with the plan to mobilize loans in VND with the corresponding term. Including the fluctuation of the exchange rate, the plan of issuing bonds will save at least 30 billion VND per year compared with the plan of VND loans with corresponding value and term. In the context of DCL’s investment in a series of projects such as Capsule 3 Factory, Cancer Drug Factory, Euvipharm restructuring, building capacity of existing plants and so on, long term funding from Rhinos is a great advantage for the Company to realize its current business strategy with low cost of capital.

In the event that Bondholders convert bonds into shares, Rhinos will become the second largest shareholder in DCL, owning more than 24% of the charter capital. At the conversion price of 25,000 VND/share, this transaction will increase by more than 20% of the book value of the stock (compare with book value at the moment). With the parent – F.I.T, this can bring a significant profit at the time of swapping bonds into stocks, and with other shareholders, it’s an opportunity to evaluate DCL stock to be dramatically improved.

Not only does it benefit financially, Rhinos participating, with experience investing in a large number of businesses across Asia, Europe and the United States, etc is expected to push DCL to leverage both professional management and collaboration opportunities with its major partners.

In recent years, thanks to efforts to upgrade M&A self-production systems and invest in new plants, DCL is one of the most modern pharmaceutical companies in Vietnam. Working with international professional partners and daily change efforts will help DCL transform its current production platform into superior business performance for its shareholders.

Professional Management Mark of F.I.T

One of the criteria for partners to invest, in addition to the business prospects of enterprises, the key factor is the requirement of professional management. And DCL’s deal is a testimony to the management profession at DCL, and more extensively to the F.I.T. system.

In the six key values of F.I.T, the value pairs of “respect for humanity and good human values” are ranked first, showing the thought of promoting professional values in the governance and operations of F.I.T.

In the past two years, F.I.T has implemented a series of staffing at its parent company and affiliates, with new personnel experienced in large international organizations in the areas where FIT and its affiliates operate.

At DCL, in addition to providing motivation for senior personnel with high qualifications and experiences, a lot of important positions have been seek by F.I.T and added with more people with outstanding achievements and experiences from working for multinational companies.

At Vikoda, a great number of marketing, R & D, distribution, etc staff of the world’s major beverage companies are also attracted to contribute to the changing plan of the Company after it became a member of F.I.T. The cosmetic, food processing fields,… are even not as notorious, but the Group leaders still promote restructuring them in the past years.

Restructuring is a process and takes more time to turn into results. It took 3 years since M&A success for F.I.T to achieve the goal of raising the DCL to a new level without just stopping at the profit growth numbers. And in the coming time, fruits from the process of restructuring from other activities will be gradually achieved.