While a series of hard nosedives caused the VN-Index to drop more than 30 points, Vincom Retail’s VRE stocks unexpectedly shone and became the largest support for the overall market. As of 1:45 pm, VRE soared about 6% to reach 27,300 dong/share.
Trading on this stock was also very active with a trading volume of nearly 26.4 million shares traded, twice as much as the previous session and also the record liquidity of VRE.
Along with Vingroup, VIC stocks also recorded positive developments with an increase of over 2%.
Notably, the sudden surge in VRE came after news of Vingroup’s upcoming “farewell”. In the latest announcement, Vingroup decided that the group and its subsidiaries will sell up to 100% of the charter capital in SDI Investment and Development Trading Co., Ltd.
SDI is the company that owns over 99% of the charter capital of Sado Business Trading Corporation, a major shareholder of Vincom Retail. The transaction is expected to be completed from March to Q3/2024. After the completion of this transaction, SDI, Sado, and Vincom Retail will no longer be subsidiaries of Vingroup.
Regarding the reasons for selling Vincom Retail, Mr. Nguyen Viet Quang, Deputy Chairman of the Board of Directors and CEO of Vingroup, stated that this is the time to concentrate all resources to develop Vingroup and key brands with high growth potential.
To accomplish this mission, Vingroup will focus its full force, especially financial resources, to create a breakthrough development in the next turning point.
The representative of Vingroup also stated that after divestment, there will 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 tenants and store owners.
In terms of business performance, in 2023, Vincom Retail recorded net revenue of VND 9,791 billion, after-tax profit reached VND 4,409 billion, a growth 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 m2.
