Chairman Dang Thanh Tam 'mortgaged' 10 million KBC shares to borrow from the bank

Mr. Dang Thanh Tam - Photo: KBC

The Board of Directors of Kinh Bac Urban Development Corporation (KBC) has just approved the decision to use KBC shares of Mr. Dang Thanh Tam - Chairman of the Board of Directors - as collateral to fulfill debt repayment obligations for loans in 2024 at credit institutions.

Accordingly, this enterprise will use 10 million KBC shares with a guarantee period calculated from the date of loan issuance (from June 17) until all of KBC's loan repayment obligations are completed.

In the morning trading session on June 19, the price of each KBC share decreased by 0.5% compared to the reference price, to VND30,250. It is estimated that with 10 million shares expected to be used as collateral, the value will be more than VND300 billion.

According to the 2023 management report, Mr. Dang Thanh Tam owns more than 138.6 million KBC shares, equivalent to 18.06% of the company's capital.

Thus, the head of KBC holds more than 7% of the total shares owned as collateral for this corporation to borrow credit capital.

In the financial report for the first quarter of 2024, KBC said that total liabilities at the end of March were VND 19,193 billion, an increase of 45% compared to the beginning of the year.

At the 2024 annual general meeting of shareholders, KBC plans to submit a plan to privately offer 250 million shares with a total issuance value of VND 2,500 billion to professional securities investors.

The proceeds from the offerings will be used to supplement business capital, strengthen financial capacity and enhance competitiveness. KBC will also use the proceeds to restructure its debts.

In 2024, this enterprise aims to achieve total consolidated revenue of VND9,000 billion and after-tax profit of VND4,000 billion, up 47% and 80% respectively compared to last year.

Source: https://tuoitre.vn/chu-tich-dang-thanh-tam-cam-co-10-trieu-co-phieu-kbc-vay-ngan-hang-20240619115358958.htm