After buying back ESOP shares (bonus shares) from resigned employees at a price equal to 1/6 of the market price, Mobile World announced a corresponding reduction in charter capital.
After restructuring stores and staff, Mobile World decided to pay Tet bonuses several times higher than the same period last year - Photo: MWG
Mobile World Investment Corporation (MWG) has just reported the results of its treasury stock repurchase transaction to the Securities Commission and HoSE.
According to the report, MWG has successfully purchased 431,179 treasury shares from the shares issued under the employee stock option program (ESOP) of retired employees.
Before the purchase, MWG's treasury shares were 328,789 shares. After this transaction, the total number of treasury shares was increased to 759,968 units.
The transaction is carried out by transfer of rights through the Vietnam Securities Depository and Clearing Corporation (VSDC).
The capital used to carry out the buyback is said by MWG to be worth more than VND 4.3 billion, equivalent to VND 10,000/share.
On the stock market, MWG has a market price of VND61,400 per share, which is more than 6 times the price of ESOP shares for employees that the company has just withdrawn.
After buying back ESOP shares (bonus shares) from resigned employees at a price equal to 1/6 of the market price, Mobile World immediately announced a corresponding reduction in charter capital.
According to MWG, the company's current charter capital is VND14,622 billion, equivalent to more than 1.462 billion voting shares. After reducing 431,179 shares (recently bought back), the number of voting shares of MWG is more than 1.461 billion.
ESOP is an abbreviation of the English phrase "Employee Stock Ownership Plan" which means issuing bonus shares to employees. This is a popular method applied by many companies, including MWG, to encourage and reward employees.
Speaking to Tuoi Tre Online, a securities company leader said that ESOP shares will be restricted from transfer for at least 1 year. If an employee quits before the transfer period, he or she will have to return the ESOP to the company.
Typically, when issuing ESOPs, companies have clear provisions for this buyback. With MWG, the company will buy back the restricted shares when the contract between the employee and the company ends for any reason.
The purpose of the enterprise's acquisition is to reduce charter capital, reduce the number of outstanding shares and thereby increase the ownership ratio for existing shareholders.
How many employees of Mobile World have quit?
The Gioi Di Dong has carried out the ESOP recall of resigned employees many times this year. The most recent recall took place in May this year, when MWG bought back 328,789 shares.
In the recall that took place in February this year, MWG bought back 154,211 ESOP shares. Last year, the company also carried out 3 ESOP recalls.
The withdrawal of ESOP from resigned employees takes place in the context that Mobile World is promoting the restructuring of its store system towards a more streamlined and efficient direction.
According to the financial report, at the end of September this year, MWG had a total of 60,258 employees, a decrease of nearly 5,200 people compared to the end of last year.
But compared to the peak number of employees in 2022, as of September this year, more than 13,700 Mobile World employees have quit their jobs.
Source: https://tuoitre.vn/sau-khi-ca-nghin-nhan-su-nghi-viec-the-gioi-di-dong-mua-lai-khoi-tai-san-gia-hoi-20241228105344088.htm
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