A Whopping Cash Dividend Paid Out by a Company with Major Shareholder Ties to Van Thinh Phat

The Saigon Hotel Corporation (SGH) is about to make a record-breaking cash dividend payout. On the 12th of July, SGH will finalise its list of shareholders eligible to receive outstanding dividends from previous years and 2023, totalling a massive 47.6% dividend ratio (equivalent to VND 4,760 per share). The company plans to disburse these dividends on July 23, 2024, amounting to nearly VND 60 billion based on the over 12 million circulating shares.

As of the end of 2023, the company’s undistributed post-tax profits stood at over VND 61 billion. This means that to meet the upcoming dividend payout, Saigon Hotel Corporation will be utilising almost all of its retained earnings.

As of December 31, 2023, SGH had two major shareholders: Saigontourist, a state-owned enterprise with a 38.86% stake, and Bông Sen Corporation, holding an 8.93% share. These dividends will result in substantial payouts to these companies, with Saigontourist receiving approximately VND 23 billion and Bông Sen over VND 5 billion.

Major Shareholder Linked to Vạn Thịnh Phát’s Bond Scandal

Notably, Bông Sen Corporation is one of the 762 companies associated with Vạn Thịnh Phát’s bond controversy, as revealed by the Ministry of Public Security. Bông Sen currently owes VND 4.8 trillion in principal and over VND 1,060 billion in bond interest. These bonds, issued in October 2021 with a 10.5% annual interest rate, were arranged by Tân Việt Securities (TVSI) and purchased by Tân Việt Securities and Tân Thành Long An, both entities linked to Vạn Thịnh Phát.

During an extraordinary meeting in August 2023, Bông Sen Corporation stated that they would liquidate assets to fulfil their obligations regarding these bonds. In 2015, the company made headlines with its purchase of over 51% of Daeha Corporation for more than VND 3,600 billion. They also acquired Saigon One Tower, a long-stalled project.

Bông Sen Corporation is renowned for its hospitality, culinary, and tourism services. They own and manage well-known brands such as Palace Saigon Hotel, Bông Sen Saigon Hotel, Bông Sen Annex Hotel, Vietnam House restaurant, Lemongrass, Calibre, Bier Garden, Buffet Gánh Bông Sen, and Brodard bakery, with 18 outlets. They also operate Lotus Tours, a reputable travel agency.