Immediately after the State Securities Commission's announcement of receiving the share buyback report document, Vinhomes Joint Stock Company quickly announced the trading period, from October 23, 2024 to November 22, 2024.
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| Perspective of Vinhomes Global Gate (Vinhomes Co Loa) - a project that has just signed a business cooperation contract with Vinhomes by Vietnam Exhibition Fair Center Joint Stock Company. |
Vinhomes Joint Stock Company ( Vinhomes, code VHM-HoSE) has just announced the implementation of share repurchase. Similar to the plan that the company has consulted shareholders in writing, the company will repurchase a maximum of 370 million VHM shares, equivalent to 8.5% of the outstanding shares of this unit. The transaction is expected to be carried out from October 23, 2024 to November 22, 2024.
"The market price of VHM shares is lower than the actual value of the company, so the repurchase is to ensure the interests of the company and shareholders," Vinhomes' announcement emphasized. The transaction method is expected to be carried out through order matching and/or agreement through a securities company, in accordance with the provisions of law. The stock price will be determined according to Article 8 of Circular 120/2020/TT-BTC regulating the trading of listed shares, registration for trading and fund certificates, corporate bonds, and listed warrants on the securities trading system.
It is estimated that, based on the closing market value on October 11 (VND45,650/share), Vinhomes will have to spend nearly VND16,900 billion. VHM's share price has also increased by about 31% since the unit announced the Board of Directors' Resolution on buying treasury shares in early August 2024.
If successfully implemented, this will be the largest treasury stock buyback in the history of the Vietnamese stock market. The buyback of such a large amount of treasury stock is quite surprising, especially in the current period when the Securities Law 2019 stipulates that charter capital must be reduced when organizations repurchase shares from shareholders. The charter capital of this company may decrease from VND 43,543.7 billion to VND 39,843.7 billion.
Previously, at the end of last week (October 11, 2024), the State Securities Commission (SSC) announced that it had received a report on the share repurchase of Vinhomes Joint Stock Company (code VHM, HoSE). The company's share repurchase plan is implemented in accordance with Resolution of the Shareholders' Meeting No. 03/2024/NQ-DHĐCĐ-VHM dated September 4, 2024, Resolution of the Board of Directors No. 15/2024/NQ-HĐQT-VH dated September 5, 2024, Decision of the Board of Directors No. 04.10/2024/NQ-HĐQT-VH dated October 4, 2024 and regulations of current law.
In the second quarter of 2024, Vinhomes earned about VND 28,218 billion in net revenue, down 13% over the same period in 2023. Of which, real estate transfer activities, the business segment accounting for more than 60% of revenue, only stopped at VND 17,842 billion, 40% lower than the same period last year. Vinhomes Royal Island - a project on Vu Yen Island in Thuy Nguyen district, Hai Phong is the project that is shouldering this business segment.
Meanwhile, financial revenue increased nearly four times compared to the same period last year, reaching VND8,124 billion, mainly thanks to income from investment and business cooperation contracts (VND6,341 billion). Despite a sharp increase in financial expenses, Vinhomes reported that its after-tax profit in the last quarter increased by about 9% compared to the same period last year, reaching VND10,608 billion.
In the first 6 months of 2024, Vinhomes recorded total consolidated net revenue of VND 36,429 billion and profit after tax of VND 11,513 billion, down 41% and 47% respectively over the same period in 2023. As of June 30, Vinhomes' total assets reached VND 494,461 billion, of which debt capital accounted for 58.18%.
Recently, the Board of Directors of the company announced that October 23 will be the closing date for the second written shareholder vote in 2024. The ex-rights trading date is October 22. The voting period is from October 23 to November 23, 2024. Thus, in parallel with the treasury stock purchase transaction (also from October 23), Vinhomes will close the right to vote in writing. The specific voting content has not been announced yet. This voting took place right after Vietnam Exhibition Fair Center Joint Stock Company (code VEF, UPCoM floor) approved the signing of a business cooperation contract (BCC) with Vinhomes to develop the Vinhomes Global Gate project (Vinhomes Co Loa).
Source: https://baodautu.vn/vinhomes-se-mua-370-trieu-co-phieu-quy-tu-ngay-2310-d227395.html
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