Chairman of Tay Bac Electricity wants to divest all 8 million shares

Mr. Tran Van Huyen, head of the Board of Directors of Northwest Electricity Investment and Development Joint Stock Company (NED), registered to sell all 8.27 million shares for the purpose of reducing ownership.

In a notice sent to the Hanoi Stock Exchange, Mr. Tran Van Huyen, Chairman of the Board of Directors of the Northwest Electricity Investment and Development Joint Stock Company (NED), said that he plans to carry out this transaction by order matching and negotiation from July 10 to August 8. If successful, Mr. Huyen will reduce his stake in NED from 20.43% to 0%.

Based on today's closing price of 7,200 VND, it is estimated that Mr. Huyen's block of shares is expected to be worth 60 billion VND.

Mr. Huyen made the capital sale when NED shares had increased sharply in the past six months. Specifically, the current market price has increased by one and a half times compared to the price of 4,700 VND at the beginning of the year. This stock climbed to the peak of 8,800 VND at one point, but it was still not enough to return to its par value. The average matched volume in the last 10 sessions reached 420,000 shares.

  It is worth noting that before divesting all his capital, Mr. Huyen had continuously collected NED shares, the most recent transaction of which took place less than 2 months ago. Specifically, in January 2024, he registered to buy nearly 7.5 million shares but only successfully matched less than 200,000 shares. The next two times, he registered to buy about 7.5 million shares and 3.5 million shares respectively, but in reality, he only successfully matched a total of more than 5.8 million shares.

NED was established in June 2006, with main business activities in the field of construction and installation of hydroelectric works, production and trading of commercial electricity. The company's charter capital is currently 405 billion VND and market capitalization is less than 300 billion VND.

This year, the company targets consolidated revenue of more than VND78 billion, up 7% over last year. Pre-tax profit is expected to reach VND12.1 billion and after-tax profit to reach VND9.6 billion, 2.3 times and 2.7 times higher than the same period last year, respectively.

The company’s management said that this year there are no plans to invest in new hydropower projects or expand production or purchase equipment. Instead, the company will focus on managing and restructuring investments to ensure a balanced source of capital.

In the first quarter of 2024, NED recorded net revenue from sales and service provision of more than VND 14 billion, down more than 36% (equivalent to VND 8 billion) compared to the same period last year. Profit before and after tax reached VND 3.2 billion and VND 2.4 billion, respectively, down 14.5% and 27.6% compared to the same period.

Total assets as of the end of the first quarter reached over VND717 billion, a slight decrease compared to VND730 billion at the beginning of the year. Liabilities were over VND256 billion, most of which were long-term debts.

Source: https://baodautu.vn/chu-tich-dien-tay-bac-muon-thoai-sach-8-trieu-co-phieu-d219544.html