Hai Phat Executives Resign, Toan Tin Phat Group Withdraws from Board of Directors
On April 19th, Hai Phat Investment Joint Stock Company (code HPX – HoSE) announced the resignation of several executives, including board member Mr. Vu Hong Son, board member Mr. La Quoc Dat, and Board of Supervisors member Mr. Bui Duc Tue.
The reason for their resignation is due to personal commitments that prevent them from fulfilling their roles.
Of these, Mr. Vu Hong Son is a member of Toan Tin Phat Investment Joint Stock Company (Toan Tin Phat), and was elected to the position of Hai Phat board member on October 21st, 2023. Prior to this, the Toan Tin Phat group acquired HPX shares to increase their ownership to 16.54% of the charter capital and officially became the largest shareholder in HPX on September 14th, 2023.
Specifically, Mr. Hoang Van Toan owns 15.2 million shares. Toan Tin Phat Investment Joint Stock Company, where Mr. Toan is the legal representative, owns 15.2 million shares.
Ms. Hoang Thi Y, Mr. Toan’s sister, owns 15 million shares. Mr. Nguyen Viet Dung, Mr. Toan’s brother-in-law, owns 4.8 million shares. Ms. Hoang Thi Nhu, Mr. Toan’s sister, owns 318,900 shares.
The total ownership of Mr. Hoang Van Toan’s shareholder group is 50.3 million HPX shares, equivalent to 16.54%.
However, after about 6 months as a major shareholder, on April 1st, 2024, the Toan Tin Phat group unexpectedly announced that it had sold more than 35.1 million HPX shares, reducing its ownership from 16.54% to 4.997%, and officially ceased to be a major shareholder in Hai Phat. After the transaction, the ownership percentage of each individual was not disclosed.
It is clear that after the divestment, the Toan Tin Phat group also withdrew its members from Hai Phat’s Board of Directors.
Chairman Do Quy Hai at Hai Phat’s 2023 Annual General Meeting of Shareholders
After more than 6 months of suspension, HPX shares resumed trading on March 20th, 2024, and as of April 19th, 2024, are trading around 6,000 VND per share.
Recently, Hai Phat announced the documents for its Annual General Meeting of Shareholders scheduled for April 26th. The company plans to approve its 2024 business plan with consolidated revenue reaching 2,800 billion VND, an increase of 67% compared to 2023 and the highest level in the past 5 years (since 2020). However, consolidated after-tax profit is expected to decrease by 22% to 105 billion VND. The parent company’s dividend payout ratio is expected to be 5%.
Notably, Hai Phat presented shareholders with two capital raising options. The first is a plan to issue shares to existing shareholders at a ratio of 2:1, corresponding to an additional issuance of 159.69 million shares at a price of 10,000 VND per share, raising 1,596.9 billion VND and implemented in 2024.
Secondly, HPX plans to issue 140.3 million private shares at a price of 10,000 VND per share, raising 1,403.1 billion VND from professional securities investors (fewer than 100 investors). Of these, privately issued shares will be subject to a one-year transfer restriction.
The total amount raised from issuing shares to existing shareholders and privately issuing shares, approximately 3,000 billion VND, will be used by HPX to restructure its debts and pay due payables; invest in contributing capital to subsidiaries to restructure and pay due payables of subsidiaries; invest in developing the company’s projects; and supplement working capital.
It is known that as of December 31st, 2023, Hai Phat had total debts of up to 2,465.4 billion VND, including 1,828.4 billion VND in short-term loans and 637 billion VND in long-term loans. Hai Phat will have to pay approximately 940 billion VND in bonds that will mature in the fourth quarter of 2024.
