In the latest filing, Ms. Nguyen Thi Minh Thu registered to sell nearly 1.1 million shares of PDR of Phat Dat Real Estate Development JSC to address her personal financial needs. If successful, Ms. Thu will reduce her holdings in Phat Dat to approximately 6 million shares, equivalent to 0.68% of the capital.
Ms. Thu is the daughter of Mr. Nguyen Van Dat, Chairman of the Board of Directors of PDR. Based on the market price of PDR shares, Ms. Thu could recoup around VND 23 billion after completing the transaction.
In the same vein, Vice Chairman of the Board of Directors, Mr. Nguyen Tan Danh, also registered to sell more than 617,000 PDR shares to meet his personal financial needs. Both transactions are expected to take place between September 6, 2024, and October 4, 2024.
The move by senior executives and their relatives comes amid a lackluster performance of PDR shares. As of the market close on August 30, 2024, the share price stood at VND 21,550 per share, reflecting a 14% decline since the beginning of the year.
Regarding business performance, the 2024 semi-annual financial statements recorded a 13% decrease in Phat Dat’s revenue for the first half of the year, totaling VND 170 billion. After-tax profit reached over VND 102 billion, a 60% decline compared to the previous year. The company attributed this result to the challenging economic conditions, including the real estate sector, and the fact that their investment and project development efforts have not been as smooth as planned.
Most recently, Phat Dat announced a temporary halt to its plan to issue shares as dividends to shareholders. According to the initial plan, Phat Dat intended to issue 131 million shares as 2023 dividends at a ratio of 15%, thereby increasing its charter capital from VND 8,731 billion to over VND 10,000 billion. However, the Board of Directors decided to prioritize focusing on issuing shares to convert debt.
Concerning debt conversion, Phat Dat plans to issue over 34 million shares at a price of VND 20,000 per share (one share will be exchanged for VND 20,000 of debt) to convert a debt of USD 30 million from ACA Vietnam Real Estate III LP (Cayman Island) incurred in March 2022, with a fixed interest rate of 8% per annum. The loan was intended for investment in the Phuoc Hai project in Dat Do district, Ba Ria – Vung Tau province.
