VNECO 8 - ANNOUNCEMENT ON PUBLIC SHARE ISSUANCE IN 2010

ANNOUNCEMENT ON PUBLIC SHARE ISSUANCE IN 2010
(Certificate of Share Offering No.10/GCN-UBCK issued on  20/01/2011 by the Chairman of State Securities Commission)

Company name: Vneco 8 Electricity Construction Joint Stock Company.
Headquarter office adress:  10 Dao Duy Tu, Buon Ma Thuot, Dak LaK

Tel.: 050 0385 9776 
Fax: 05003858921
Website: vneco8.com.vn

Email:  [email protected]
1. Reason and purpose of announcement: To launch a SEO (seasoned equity offering)

·         Name of share: Share of Vietnam Electricity Construction JSC Vneco 8

·         Type of share: Ordinary

·         Ticker: VNECO8

·         Par value: VND 10,000

·         Total number of shares offered: 1,200,000 shares, of which

o    Number of shares offered to existing shareholders: 1,200,000 shares with a 1:1 exercise sratio (Each shareholder has the right to buy one new share for every one share that s/he currently holds).

2. Total volume (in par value terms):  VND 12,000,000,000 (Twelve billion Vietnamese dong)
3. Purpose of capital raising: 

a. To invest in real estate, switching from a land renting model to a land allocation model with a land use fee collection scheme on a land area of 2,479 m2 at 7 Nguyen Thi Đinh Street, Khanh Xuan, Buon Ma Thuột, Đak Lak that the Company currently rents:  VND 6,000,000,000. 
b. To purchase towed vehicles:  VND 1,500,000,000. 
c.  To purchase machinery and equipment:  VND 500,000,000.
d. To increase working capital and change capital structure:  VND 4,000,000,000.
4. Offering price

·         Price for existing shareholders:  VND 10,000 per share.

5. Closing date for finalizing the list of existing shareholders:  17:00PM on 14 February 2011
6. Share allocations:

·         Every exisitng shareholder has the right to buy new shares under the right exercise ratio of 1:1, whereby s/he has the right to buy one new share for every existing  share s/he currently holds.

·         Method of rounding and dealing with the number of odd shares: The number of shares issued to existing shareholders will be rounded down to the unit. The number of decimal shares will be cancelled.

·         In case of unsubscribed shares (if any), the Board of Directors shall offer them to other investors under the conditions that their price cannot be lower than that which is offered to the existing shareholders (VND 10,000 per share).
E.g., If Nguyen Van B whose name appears in the list of existing shareholders at the closing date holds 10,000 shares, he shall have the right to buy 10,000 new shares at a price of VND 10,000.

Rule for transfering rights: During the time that existing shareholders register to buy new shares up until 2 days prior to the share payment deadline, any exisiting shareholder has the right to transfer his/her rights to buy new shares in just one go. The person who receives the transferred right is prohibited from transferring it to a third-party person.

7. Schedule for registration to buy new shares:

·         Schedule for registration to buy new shares and make payments therefor by existing shareholders:  1 March 2011 – 29 March 2011 (the schedule for transfering purchase rights shall be from 1 March 2011 to 25 March 2011)

8. Location:

·         Existing shareholders can register for share purchases and pay for shares at those securities firms with which they have opened their accounts,

or

·         They can exercise their rights and make payments directly at the Headquarter Office of the Company within the time schedule mentioned above.  Please bring your national identity cards or other legally valid personal identification documents when doing so.

·         Credit cash into the Company’s block account.

Purpose of cash deposit: Cash payment for ..........(number of shares) of additional share issuance, made by…………….. (name of shareholders), Identity Card No.:................Date of Issue:..............Place of Issue:………...........

9. Details of the Company’s blocked account used for share payment

·         Account holder: Vietnam Electricity Construction JSC Vneco 8

·         Account number:   63110000219753

·         Bank: Dak Lak Provincial Bank of Investment and Development

10. Advisors: Saigon Securities Inc. (SSI)
11. Place for obtaining the Prospectus:

·         Vietnam Electricity Construction JSC Vneco 8, website:  http://www.vneco8.com.vn

·         Saigon Securities Incorporation, website:  www.ssi.com.vn