Kinh Bac Urban Development Corporation (KBC) has just announced that Chairman of KBC Board of Directors Mr. Dang Thanh Tam registered to transfer more than 86 million shares, worth about 2,300 billion VND to his own company.

This is the next notable move after Mr. Dang Thanh Tam's business announced a cooperation agreement with Mr. Donald Trump's Trump Organization to invest 1.5 billion USD in Hung Yen province in September.

Previously, KBC approved the offering of 250 million shares to professional securities investors, expected to raise 6,250 billion VND. Recently, Mr. Dang Thanh Tam's son and daughter have also started participating in business activities in Mr. Tam's family's business ecosystem.

Regarding the transfer of shares to a private company, according to KBC, on November 19, Mr. Dang Thanh Tam registered to transfer 86.55 million shares (out of the total of nearly 138.67 million shares that Mr. Tam is holding) to DTT Investment and Development JSC to contribute capital to this company with shares. The expected implementation time is from November 25 to December 24.

Before the transaction, DTT Company did not hold any shares in KBC. If the transaction is successful, Mr. Dang Thanh Tam's private company will become a new major shareholder of Kinh Bac, with an ownership ratio of 11.27%.

At the end of the trading session on November 19, KBC shares fell sharply for the second consecutive session and reached VND26,600/share. If the transaction is successful, the number of shares Mr. Tam transferred to his private company is worth about VND2,300 billion.

If the transaction is successful, Mr. Tam will directly hold more than 52.1 million KBC shares, equivalent to 6.79% of shares.

DangThanhTamHH1OK.jpg
Mr. Dang Thanh Tam, Chairman of KBC. Photo: HH

DTT Investment and Development JSC was newly established at the beginning of this year, with the business of real estate. Initially, Mr. Tam held more than 90% of DTT shares. However, as of November 19, Mr. Tam still held 18.06% of DTT's capital.

It is quite common for business leaders to transfer shares to private companies in listed companies. Businessmen tend to concentrate their assets in one place for easier management and other benefits.

Previously, many businessmen such as Nguyen Duy Hung (SSI), Dang Van Thanh, Le Phuoc Vu (HSG), Nguyen Duc Tai (MWG), Mr. Tran Kim Thanh and his wife (KDC)... also transferred shares to their own companies.

This helps businessmen not to pay tax when receiving cash dividends (5%), not to pay personal income tax when transferring securities (0.1% on the value of securities sold), but instead pay corporate income tax (commonly 20%).

In addition to the cost of capital, businesses can deduct many expenses such as entertaining guests, traveling, marketing, sales, etc. If the business incurs a loss, this loss can be registered to be carried forward (transferred loss) within 5 years...

The move to transfer KBC shares to Mr. Dang Thanh Tam's private company is noteworthy after Trump Organization - the corporation of Mr. Donald Trump's family and Hung Yen Hotel Services JSC - a subsidiary of Kinh Bac Urban Area on September 25 announced cooperation and investment in a hotel complex, golf course, and residential area worth about 1.5 billion USD in Hung Yen.

The complex includes a 54-hole Vvip golf course system, a high-end resort system and a villa system providing services according to the highest standards of Trump Organization to serve special events and high-level conferences. In addition, there is a system of hotels and modern urban and residential complexes.

Also after KBC's handshake with Donald Trump, Mr. Dang Thanh Tam's second son, Dang Nguyen Nam Anh, appeared for the first time as the representative of KBC's office in Hoan Kiem district, Hanoi.

Previously, Ms. Dang Nguyen Quynh Anh (born in 1996) - Mr. Tam's daughter - bought KBC shares and became a shareholder of her father's company. Currently, Ms. Quynh Anh owns more than 13.3 million KBC shares and is a member of the Board of Directors.

Mr. Dang Thanh Tam and his wife, Mrs. Nguyen Thi Kim Thanh, have 4 children: Dang Nguyen Quynh Anh, Dang Nguyen Nam Anh, Dang Nguyen Duy Anh and Dang Nguyen Bao Anh.

Tycoon Dang Thanh Tam 'hoards' 9,500 billion, waiting for investment boost from Mr. Trump's family Kinh Bac Urban Development (KBC) of tycoon Dang Thanh Tam earns huge profits from industrial park business and bank deposit interest but is also in huge debt. The industrial real estate giant is having a potential project with Mr. Donald Trump's family.