Song Hong Land has just reported on the date of becoming a major shareholder of Song Hong Corporation (Stock code: SHG) from December 28, 2023, after purchasing 13.23 million SHG shares, equivalent to 49% of Song Hong Corporation's equity.
This move took place after the Ministry of Construction announced the successful auction of more than 13.24 million SHG shares, completing the divestment of more than 49% of the enterprise's capital.
According to the auction results, two investors bought all of more than 13.24 million SHG shares at a price of VND10,500/share, about 3 times higher than the market price of SHG at the same time.
Of which, Song Hong Real Estate Investment JSC is an institutional investor that bought 13.23 SHG shares, equivalent to the amount spent of nearly 139 billion VND.
Previously, Song Hong Land did not hold any SHG shares.
With the successful offering, the Ministry of Construction earned more than 139 billion VND and is no longer a shareholder of Song Hong Corporation.
According to the information announcement of Song Hong Real Estate Investment JSC, this enterprise has its head office address at office building No. 165 Thai Ha (Song Hong Parkview), Lang Ha ward, Dong Da district, Hanoi city. The legal representative is Van Diem Huong.
Enterprises operating in the fields of real estate business, real estate brokerage, construction, investment trust services, entertainment services...
Notably, Song Hong Real Estate Investment JSC has founding shareholders including Song Hong Corporation, Song Hong Construction JSC; Song Hong Real Estate Investment and Trading JSC and Bien Bac Import-Export Investment JSC.
How is Song Hong Corporation doing?
On January 9, the Ministry of Public Security issued information stating that the Ministry of Public Security's Investigation Police Agency has just arrested and temporarily detained La Tuan Hung, General Director of Song Hong Joint Stock Corporation, for violations related to AIC Company and the Medical Construction Project Management Board under the Department of Health of Bac Ninh province.
Meanwhile, on December 29, 2023, Song Hong Joint Stock Corporation announced the dismissal of Mr. La Tuan Hung from the position of General Director due to long-term leave and appointed Mr. Phan Viet Anh as acting General Director of the Corporation.
Song Hong Corporation, formerly Viet Tri Architecture Company, under the Ministry of Construction, was established in 1958.
In 2009, the company conducted an initial public offering (IPO) of nearly 7 million shares with a successful auction price of VND22,290/share from a starting price of VND14,000/share.
After equitization of SHG, the Ministry of Construction represents 49.04% of state capital in this enterprise.
But since equitization, Song Hong Corporation's business activities have encountered many difficulties.
After the first half of 2023, Song Hong Corporation achieved net revenue of just over 3.8 billion VND, down 83% over the same period. At the end of the first half of 2023, the corporation recorded a loss after tax of nearly 27 billion VND.
Thereby, increasing the accumulated loss of Song Hong Corporation as of June 30, 2023 to VND 1,292 billion, causing the corporation's equity to be negative VND 986 billion.
By the end of the second quarter of 2023, the corporation recorded a debt of VND 1,971 billion, of which the majority came from short-term payable expenses of VND 912 billion; loans and financial lease debts of more than VND 313 billion.
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