On August 15, the Board of Directors of Vinhomes Joint Stock Company (coded VHM on HoSE) announced a document to collect opinions from shareholders in 2024.
Accordingly, VHM sent a proposal to the Annual General Meeting of Shareholders to consider and approve the plan to purchase 370 million VHM shares, or 8.5% of the total outstanding shares, to protect the interests of the company and shareholders as the share price is currently lower than its intrinsic value.
The capital for this purchase will come from undistributed profits as of June 30, amounting to VND 146,584 billion.
Vinhomes will proceed with the share repurchase immediately after obtaining approval from the State Securities Commission for the company’s registration dossier. The repurchase will be carried out through matching orders on the trading floor and/or through agreements with securities companies, in accordance with legal regulations.
Following the transaction, Vinhomes’ charter capital will decrease by VND 3,700 billion, from VND 43,543.7 billion to VND 39,843.7 billion.
VHM stated that this proposal was announced on August 7. On August 12, Vinhomes finalized the list of shareholders entitled to vote, with a ratio of 1:1 (each shareholder owning one share is entitled to one vote).
On the same day, Vinhomes submitted to the shareholders for approval the amendment and supplementation of several business lines, mainly related to the trading, installation, and design consulting of fire protection equipment and materials.
Regarding treasury shares, in 2019, the VHM Board of Directors approved the purchase of up to 60 million shares, equivalent to 1.79% of the charter capital, as the market price of VHM shares was lower than the company’s actual value. This move aimed to protect the interests of shareholders.
Subsequently, from November 15, 2019, to December 10, 2019, VHM purchased the abovementioned treasury shares at an average transaction price of VND 92,425 per share, amounting to a total of VND 5,545.5 billion.
As per the company’s financial statements for Q1 2021, the value of these treasury shares was recorded at nearly VND 5,550 billion.
Nearly two years later, in July 2021, VHM registered to sell all 60 million treasury shares from July 26 to August 24, 2021, through matching or agreement methods to supplement the company’s working capital.
After registration, VHM successfully sold the treasury shares from July 26 to August 11, 2021, at an average transaction price of VND 108,637 per share, and the company no longer held any treasury shares.
At the close of the trading session on August 15, the VN-Index decreased by 0.6% (6.8 points) to close at 1,223.6 points, with 109 gainers, 301 losers, and 64 unchanged codes. Liquidity decreased compared to the previous session, reaching USD 459.2 million. However, during this session, the VHM share price increased by 1.75% to VND 37,900 per share.
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