On May 16, 2024, the Board of Directors of Yeah1 Group Joint Stock Company (stock code: YEG) issued a resolution on the implementation of the plan to issue shares under the employee stock ownership plan (ESOP).
According to the issuance plan, Yeah1 expects to issue more than 5.6 million ESOP shares without collecting money from 38 members of the Board of Directors, the Supervisory Board, the Board of Directors, and key officers of the company and its subsidiaries. The list includes Chairman of the Board Le Phuong Thao, CEO Ngo Thi Van Hanh, Deputy CEO Che Doan Vien, Deputy CEO Pham Minh Tien, Supervisory Board member Nguyen Van Nam, and Supervisory Board member Vuong Ho Tri Dung, among others.
The purpose of the ESOP issuance is to retain and motivate key officers, important personnel, and talented employees who have contributed to the company’s business results and development. Additionally, it aims to attract high-quality human resources, contributing to enhancing the company’s image.
Shares issued under the ESOP program will be restricted from transfer for the first year, with a 30% transfer allowed in the second year, 35% in the third year, and the remaining 35% in the fourth year.
The implementation is expected to take place in 2024, after the State Securities Commission announces the receipt of the full report on the issuance.
“Chị đẹp đạp gió rẽ sóng” (Beauty in the Wind) show produced by Yeah1
At the recent annual general meeting of shareholders, when asked why the company chose to implement ESOP instead of paying dividends to shareholders, Ms. Le Phuong Thao, Chairman of the Board, answered that in the media and entertainment industry, the most significant contributors to success are people and technology.
Regarding people, the Company has not had an ESOP program for its employees for a long time. Yeah1 recognizes that in the upcoming period of strong development, people will be the key factor in achieving success and will be crucial to the Group’s triumph. It will build a robust Group and bring sustainable revenue and profits, ultimately contributing significant value to shareholders.
Therefore, despite the current challenging conditions, Yeah1 has convened the Board of Directors and the Personnel Committee and decided to allocate this ESOP portion to employees to ensure their benefits and highest commitment.
Moreover, to mobilize resources for expansion plans, the Company also approved the plan to issue 54.8 million shares to offer and sell to existing shareholders, equivalent to a ratio of 40% (for every 10 shares held, shareholders have the right to buy 4 new shares).
With an issuance price of VND 10,000/share, the Company expects to raise an additional VND 548 billion. The new capital will be used to enhance capital capacity, implement plans for capital contribution/cooperation in establishing new business segments, M&A, debt restructuring, and supplement working capital.
In the first quarter of 2024, Yeah1 recorded revenue of VND 73.5 billion, up 21% over the same period last year. After-tax profit reached VND 11 billion, triple that of the previous year. Compared to the set plan, the Company achieved 18% of the year’s plan at a low level and 11% at a high level in the first quarter.
On the stock market, as of the closing price on May 18, YEG shares stood at VND 9,400, down more than 20% from the beginning of the year.
