Dang Thanh Tam, Chairman of Saigon Telecommunication Technology Joint Stock Company (Saigontel, code: SGT, HoSE floor), registered to sell 25 million SGT shares to reduce his ownership rate. If the transaction is successful, Mr. Tam will reduce his ownership rate in SGT from more than 35 million shares, a rate of 23.69%, to more than 10 million shares, a rate of 6.8% of capital at SGT.
Conversely, DTT Investment and Development JSC registered to buy 25 million SGT shares to increase its ownership rate. Previously, this company did not own any SGT shares. If the transaction is successful, DTT Investment and Development will increase its ownership rate to 16.89% of capital at SGT.
Both of the above transactions will be carried out by order matching and/or negotiation, during the period from May 6th, 2024 to June 4th, 2024.
Mr. Dang Thanh Tam – Chairman of Saigontel
Regarding the relationship, Dang Thanh Tam is currently the legal representative and Director of DTT Investment and Development. Therefore, it is likely that this is a transaction between Mr. Tam and DTT Investment and Development. Reportedly, DTT Investment and Development JSC was newly established in January 2024.
In addition, Mr. Tam also holds many positions in other companies such as Chairman of the Board of Directors of Kinh Bac Urban Development Corporation – JSC (code: KBC), Chairman of Sai Gon – Northwest Urban Development JSC, Chairman of Sai Gon – Hai Phong Industrial Zone JSC, Member of APEC Business Advisory Council, Member of the Executive Committee of Vietnam Chamber of Commerce and Industry (VCCI),…
In the most recent trading session on April 26th, the SGT stock price closed at VND 11,750/share, up 4% compared to the beginning of the year. Assuming this price, Mr. Tam is expected to earn nearly VND 294 billion, which is also the amount that DTT Investment and Development needs to spend on the transaction.
In other developments, Saigontel successfully organized the 2024 Annual General Meeting of Shareholders on April 19th. The General Meeting approved the revenue plan of VND 4,000 billion and profit before tax of VND 450 billion, 3 times and 6 times higher than the implementation in 2023, respectively, a record for the enterprise since 2005.
Despite setting a record business plan, SGT has no plan to pay dividends to shareholders but will retain all accumulated undistributed profits for reinvestment, supplementing working capital.
Specifically, SGT plans to continue arranging capital sources of approximately VND 3,000-3,500 billion in 2024 through capital increase as well as mobilization from strategic partners, bank loans, financial institutions, or investment cooperation to implement projects and supplement business capital.
