Mr. Nguyen Quang Nghia (the man wearing a mask) at the 2023 Annual General Meeting of TDH. Photo: Thuong Ngoc
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If the transaction is successful, Mr. Nghia’s ownership in TDH will decrease significantly from 18.4% to 0.05%, meaning he will no longer be a major shareholder of the Company. The reason given for the sale is financial needs.
Based on the closing price of TDH‘s shares on December 4, 2024 (VND 2,150/share), the value of the transaction by the Chairman of TDH could exceed VND 44 billion. It is worth noting that the current share price of TDH is at its lowest since its listing in 2006.
| Price movement of TDH shares from 2023 up to now |
However, compared to the amount spent to purchase more than 21 million shares (18.7%) in June 2023 (estimated at VND 4,340/share), Mr. Nghia incurred a loss of VND 2,190/share after holding the shares for almost 1.5 years. Multiplying this loss by the number of shares expected to be sold, the total loss could amount to more than VND 45 billion.
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Mr. Nghia’s transactions from June 2023 up to now
Compiled by the author. Yellow: expected transaction
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Mr. Nghia became the largest shareholder of TDH after purchasing more than 21 million shares in three consecutive sessions from June 16 to 20, 2023, equivalent to 18.7% ownership. Soon after, at the 2023 Second Annual General Meeting of TDH in August 2023, he joined the Board of Directors and has been serving as Chairman ever since.
The Chairman’s move to divest comes after a significant change in the Company’s personnel. Specifically, on November 28, 2024, Mr. Nguyen Hai Long resigned from his position as General Director for personal reasons after about 7.5 months on the job. He is the second General Director to resign since Mr. Nghia became Chairman of TDH, the previous one being Mr. Dam Manh Cuong.
According to TDH’s announcement on November 29, after stepping down as General Director, Mr. Long was appointed as Senior Advisor to the Board of Directors, the Chairman, and the General Director of the Company.
Meanwhile, Ms. Tran Thi Lien was appointed as the new General Director, effective from November 29, 2024, until the end of the term of the Board of Directors (2020-2025) or until another decision is made.
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