Tasco : to swap shares and own 100% of SVC Holdings via private placement

Tasco to swap shares and own 100% of SVC Holdings via private placement Last update August 29, 2023

August 25, 2023, Tasco Joint Stock Company officially received Official Letter No. 5880/UBCK-QLCB from the State Securities Commission on the private placement to swap shares with SVC Holdings Joint Stock Company. Accordingly, Tasco will issue additional shares to swap with SVC Holdings shareholders and SVC Holdings will become a one-member limited liability company - 100% owned by Tasco.

This scheme marks a significant step forward in the development and implementation of Tasco's new Vision: To be the number 1 choice for automotive services and smart transport infrastructure in Vietnam. Tasco has and will befully committedto this vision after a robust processof restructuring, streamlining operations, divesting from non-core businesses that non-aligned with its vision.

In specific, Tasco's Board strongly believe that the merger will fulfil the following main goals:

• Shaping vertical integration of itsbusiness model,aiming to (1) offer total & life-time value automotive services to customers. In addition to new cars, used cars, spare parts sales & repair and maintenance services. Tasco will also offer other value-added services such as insurance, financing, car trade-in & upgrades, electronic toll collection, parking, petrol payment, road maintenance charges collection and other services attached to vehicles and vehicle owners; and (2) Participate in high value-creating segments of the automotive industry and move upstream through cooperation with global reputable partners.
• Creating asizable and influential organization,aiming to enhance competitiveness, lean & agile organization, strong international partnership, talents attraction, advanced technology application and large-scale mobilization of resources.
• Base on 2022 financial report, after the share swap, Tasco will command a consolidated revenue of 26,847 billion VND (aggregated revenue of more than 38,000 billion VND), with more than 70% market share in Vietnam's Electronic Toll collection (VETC) and nearly 3 million customers, 83 automotive showrooms, over 8,000 employees across 36 major provinces and cities in Vietnam.
• Enhancingtransparency, governance and sustainablegrowth. As core values, Tasco is committed to integrating all businesses and corporate governance in accordance with the listed entity regulations, large organization best-practices and toward international standards in strategic partnership and fund raising.

In addition, Tasco will continue to inherit & maintain existing BOT business, office real estate, commercial centers, rental properties and real estate portfolio management of SVC Holdings and the former Tasco. These operations are considered as complementary businesses, which enhance the overall's customer services and will be restructured to be leaner and more synergized with the corporate overarching vision.