Tan Tao Chairman's company failed to buy 5.8 million ITA shares

Tan Phuong Dong - a company related to Ms. Dang Thi Hoang Yen, Chairwoman of Tan Tao (ITA) Board of Directors, could not buy any of the 5.8 million registered shares.

In a recent announcement sent to the Ho Chi Minh City Stock Exchange (HoSE), Tan Dong Phuong Construction and Development Investment Joint Stock Company said it did not complete the purchase of 5.8 million ITA shares as planned from August 26 to September 24. The reason was because “market conditions were not suitable”.

Previously, Tan Phuong Dong registered to buy this block of shares to increase its ownership ratio at Tan Tao from 11.84% (equivalent to 111 million shares) to 12.46% of charter capital (equivalent to 116.9 million shares).

Ms. Dang Thi Hoang Yen, Chairwoman of Tan Tao Board of Directors, is currently the General Director of Tan Dong Phuong. In addition, Mr. Nguyen Thanh Phong, General Director of Tan Tao, holds the position of Deputy General Director at Tan Dong Phuong.

During the time Tan Dong Phuong registered for trading, ITA shares fluctuated a lot. Specifically, a week ago, the company received a document from HoSE about suspending the shares from trading. The suspension will take effect from September 26. Previously, the shares were also restricted from trading because the company was 45 days late in submitting its audited financial statements for 2023, compared to the prescribed deadline.

In terms of market price, ITA shares have decreased by 37% over the past month. Currently, this stock has decreased for the second consecutive session, down to VND 2,400 and closed with no buyers. This is the lowest price range of this stock in more than 5 years, from May 2020 to present. The average matched volume in the last 10 sessions is approximately 1.8 million shares.

In June, Tan Dong Phuong successfully purchased nearly 38 million ITA shares through negotiation. Based on the closing price of the last trading session of VND5,280, it is estimated that Tan Phuong Dong spent more than VND200 billion to increase its ownership ratio at Tan Tao from 7.79% (73.11 million shares) to 11.84% of capital as at present.

Tan Tao’s business performance was relatively positive in the first half of this year. The company reported pre-tax profit of VND70.2 billion and post-tax profit of VND64.2 billion after deducting expenses, up 46.2% and 64.6% respectively over the same period last year.

According to the plan approved at the shareholders' meeting at the end of June, Tan Tao set a target of recording revenue and income of VND530 billion this year. Pre-tax profit was VND222 billion and after-tax profit was VND178 billion. After half a year, the company has completed 26.8% of its revenue target, 31.6% of its pre-tax profit and more than 36% of its after-tax profit.

The Board of Directors plans to divest capital from a number of companies and contribute capital to Saigon - Mekong Urban Investment Joint Stock Company to implement industrial park projects in Duc Hue District (Long An). The Board of Directors also proposed that shareholders proactively seek domestic or international financial institutions to borrow capital or issue bonds to restructure debt and supplement working capital for operations.

As of the end of the second quarter of 2024, Tan Tao had total assets of VND 12,244 billion. Liabilities increased by 5.3% compared to the beginning of the period, from VND 1,783 billion to VND 1,878 billion.

Source: https://baodautu.vn/cong-ty-cua-chu-tich-tan-tao-mua-bat-thanh-58-trieu-co-phieu-ita-d225780.html