While a series of hard pillars caused the VN-Index to “fall” over 30 points, Vincom Retail’s VRE stock unexpectedly shone and became the biggest support pillar for the general market. As of 13:45 PM, VRE skyrocketed by ~6% to reach 27,300 VND/share.
Trading in this stock was also very active with a trading volume of nearly 26.4 million units being exchanged by the afternoon session, more than double the previous session and also the record trading volume of VRE.
Just like its “family” Vingroup’s VIC stock also recorded positive changes with a 2% increase.
Notably, VRE’s sudden surge came after the news of its imminent “breakup” with Vingroup. In the latest announcement, Vingroup decided that the group and its subsidiaries would sell up to 100% of the charter capital in SDI Investment and Development Trading Company Limited.
SDI is the company that owns over 99% of the charter capital of Sado Trading Business Joint Stock Company, a major shareholder of Vincom Retail. The transaction is expected to be completed from March to Q3/2024. After this transaction is completed, SDI, Sado, and Vincom Retail will no longer be subsidiaries of Vingroup.
Regarding the reason for selling Vincom Retail, Mr. Nguyen Viet Quang, Vice Chairman of the Board of Directors and CEO of Vingroup, said that this is the time to focus all resources on the strong development of Vingroup and key brands with high growth potential.
In order to accomplish this mission, Vingroup will deploy all its resources, especially financial resources, to create momentum for breakthrough development in the next turning point.
Vingroup representatives also stated that after divesting capital, there would be no changes in the organizational structure, management, and operation model of Vincom Retail. Vingroup will sign a management contract with Vincom Retail, in which the group will manage the operations of shopping centers on behalf of tenants and ensure the rights of lessees, stall owners.
In terms of business results, in 2023, Vincom Retail recorded net revenue of 9,791 billion VND, after-tax profit of 4,409 billion VND, an increase of 33% and 58.8% respectively compared to the same period. Vincom Retail currently manages 83 shopping centers in 44 provinces and cities. In 2024, Vincom Retail plans to open 6 more shopping centers, with a total retail floor area of about 160,000 square meters.
