FPT receives shareholder approval for stock swap with units

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FPT Corp., Vietnam's biggest publicly traded telecommunications and software company, said it has received shareholder approval to issue 19.8 million shares to combine three subsidiaries.

The consolidation will help boost the company's growth and cut costs, FPT said in an e-mailed statement today announcing the approval. FPT will swap the shares with that of three subsidiaries, FPT Information System, FPT Software and FPT Trading Group, it said in an earlier statement on its website.

Chief Executive Officer Truong Dinh Anh said last month FPT had planned to consolidate five subsidiaries and focus on restoring the rate of annual earnings growth to more than 30 percent.

The Hanoi-based FPT estimated first-quarter pretax profit at VND516 billion ($24.7 million), equal to 21 percent of its full-year target, Vice Chairman Bui Quang Ngoc said by phone Friday. Revenue is estimated at VND5 trillion in the same period, or 20 percent of the full-year target, he said.

The company posted pretax profit of VND384.4 billion and revenue of VND4.3 trillion in the first three months ended March 31 last year, according to a statement on its website on April 19, 2010.

FPT's shares closed unchanged at 53,000 dong as of 11 a.m. local time today. The country's benchmark VN Index of stocks ended the day little changed at 460.96.

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