Inter Milan boss incurs loss in Ninh Van Bay deal
The revenue of Ninh Van Bay real estate company in 2015 dropped by nearly 30% to VND148 billion over the same period. The company recorded a loss after tax of VND81 billion.
Its total assets decreased by over VND60 billion to VND1,376 billion. It has to pay a debt of VND471 billion to the largest creditor - Techcombank.
In late 2014, Ninh Van Bay pledged assets including ongoing projects to issue 230 million bonds at the price of VND7,500 for Tecombank. Earlier, in 2012, Techcombank Capital, a subsidiary of Techcombank, also owned a 6.6% stake in Ninh Van Bay.
Along with business failure, its share prices also fell to only VND2,700.
Among the investors of Ninh Van Bay, the one that gets largest losses is billionaire Rosan P. Roeslani,
Chairman of Recapital Group, the boss of International Sports Capital (ISC) - the organization that owns 70% stake in Inter Milan football club. In 2013, the billionaire spent US$225 billion to buy 30 million shares and is the largest shareholder with 35.87% in Ninh Van Bay.
 |
|
Billionaire Rosan P. Roeslani, Chairman of Recapital Group. |
Compared with the price in 2013 (VND7,500/share), the current value of 30 million shares of Recapital is only VND81 billion. Thus, based on the market price, Recapital has lost at least VND144 billion or nearly US$6.4 million.
Recapital Group was founded by Rosan P. Recapital Roeslani, an Indonesian billionaire. The total value of this group is estimated at more than US$2 billion.
Ninh Van Bay was founded in 2006, mainly operating the fields of resort real estate with numerous five-star resorts as Emeralda Gia Vien (Ninh Binh province), Six Senses Ninh Van Bay (Nha Trang), Emeralda Hoi An (Quang Nam), Six Senses Sai Gon River (Dong Nai), Lac Viet Tourist City (Binh Thuan) ... In 2013, the company increased charter capital to VND905 billion.
Ninh Van Bay did not hide the ambition to become the leading company in Vietnam and in the region in the field of real estate investment and development.
However, during the time the real estate market was in deep crisis, Ninh Van Bay expanded investment with a wide range of resort and tourism projects.
Lack of funding to implement some projects has forced Ninh Van Bay to suspend the Six Senses Saigon River while Ninh Binh Emeralda incurred losses in the initial period.
In the context of the global economic crisis and domestic economic slowdown as well as tourism slowdown, Ninh Van Bay has had consecutive losses.
The financial statements show that in 2011 the company's net loss was VND90 billion and VND81 billion in 2012.
To solve the problem of capital, Ninh Van Bay decided to release 30 million individual shares and Recapital Group was selected as the strategic shareholder. In 2013 Ninh Van Bay had accumulated losses and recorded an after-tax profit of VND40.5 billion.
However, the appearance of Inter Milan boss and the reputation of the Recapital Group did not help Ninh Van Bay revive.
A report in 2014 showed that its net profit declined by more than 55%, to just over VND22 billion.