The New Owner: Kido Takes Over Hung Vuong Plaza

This week, 26 companies announced dividend payouts. Of these, 22 companies will pay dividends in cash, 3 will issue stock dividends, and 1 will offer a combination of both.

Kido Group Joint Stock Company (stock code: KDC) has completed the acquisition of a 58.5% stake in Hung Vuong Joint Stock Company – the owner of Hung Vuong Plaza. This transaction is part of Kido’s plan to gradually increase its ownership to 77% of Hung Vuong, as per a resolution passed by Kido’s Board of Directors in mid-July.

Hung Vuong Joint Stock Company owns a famous commercial building, formerly operated by Parkson, located at 126 Hong Bang, District 5, Ho Chi Minh City.

Established in 2004, Hung Vuong is currently directed by Mr. Le Van Quang (aged 27) as its General Director. Hung Vuong Plaza was one of Parkson’s first locations when they entered the Vietnamese market. However, due to continuous losses, Parkson Vietnam Co., Ltd. (wholly owned by Parkson Retail Asia) had to file for voluntary bankruptcy in April 2023.

Suspension of Dividend Payouts

Phat Dat Real Estate Development Joint Stock Company (stock code: PDR) has decided to halt its plan to issue bonus shares as dividends to existing shareholders. Initially, PDR intended to issue nearly 131 million new shares as dividends, equivalent to a 15% dividend ratio, meaning that for every 100 shares owned, shareholders would receive 15 new shares.

However, PDR has opted to prioritize another share issuance plan to convert debt, as approved at the 2024 Annual General Meeting of Shareholders. This decision aims to ensure the timely execution of the company’s debt conversion commitment to its partners.

Mr. Nguyen Van Dat, Chairman of PDR’s Board of Directors, has been authorized to make and direct all relevant decisions, including withdrawing the share issuance proposal for dividends from the State Securities Commission of Vietnam. He will also oversee the temporary suspension of the dividend payout plan and the implementation of the share issuance for debt conversion with foreign organizations. Additionally, he will consider the appropriate timing for executing the previously approved dividend payout plan.

Regarding debt conversion, PDR intends to issue 34 million new shares at VND 20,000 per share to convert a USD 30 million loan from ACA Vietnam Real Estate III LP. This convertible loan, agreed upon in March 2022, has a three-year term and a fixed interest rate of 8% per annum on the outstanding balance. The loan is eligible for debt-to-equity conversion, and the conversion price has been adjusted from VND 119,800 per share to VND 20,000 per share, representing a ratio of 1:20,000. This means that for every VND 20,000 of debt, the lender will receive one share. If the planned number of shares is issued for conversion, the lender will hold approximately 3.89% of PDR’s charter capital.

The purpose of this debt conversion is to restructure the company’s finances, reduce borrowing costs, increase charter capital, and attract foreign shareholders. The converted shares will be subject to a one-year lock-up period.

MSB and OCB: Billion-Dollar Capital Increases

Mr. Vo Thanh Duong, Vice Chairman of the Board of Directors and General Director of Quang Ngai Sugar Joint Stock Company (stock code: QNS), has registered to purchase 1 million shares to increase his investment stake. The transaction will take place between August 26 and September 24, 2024, through matching and/or put-through orders.

Currently, Mr. Duong holds over 31 million shares, representing an 8.44% stake in the company. If the transaction is completed, his ownership in QNS will increase to over 32 million shares.

Dong Anh Chain Joint Stock Company (stock code: DFC) is preparing to finalize its 2023 dividend payout with a 20% cash dividend ratio. This means that for every share owned, shareholders will receive VND 2,000. DFC will need to allocate nearly VND 23 billion for this dividend payout. The ex-dividend date is set for August 27, and the payment date is scheduled for September 17, 2024.

Vietnam Maritime Commercial Joint-Stock Bank (stock code: MSB) has announced that August 29, 2024, is the record date for shareholders to receive dividends in shares, with a ratio of 30%. Specifically, MSB will issue a maximum of 600 million new shares as dividends. Following this issuance, MSB’s charter capital will increase by VND 6,000 billion, from VND 20,000 billion to VND 26,000 billion.

Orient Commercial Joint Stock Bank (OCB, stock code: OCB) has also informed its shareholders that August 30, 2024, is the record date for finalizing the list of shareholders eligible to receive dividends in shares, with a ratio of 20%. Accordingly, OCB will issue nearly 411 million new shares as dividends. The source of this issuance will be the undistributed after-tax profit accumulated up to the end of 2023. Following this issuance, OCB’s charter capital is expected to increase to nearly VND 24,658 billion.