Sunday, April 5 2020

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Companies race to buy back shares as stocks tumble

Update: March, 21/2020 - 08:27

 

 

A Thành Thành Công Biên Hòa JSC factory. Members of the board of directors of the Thành Thành Công Sugar Joint Stock Company (SBT) have registered to buy 4.5 million SBT shares between March 23 and April 21. — Photo congthuong.vn

 

HÀ NỘI — Dozens of companies are racing to buy back shares to stabilise prices amid the COVID-19 outbreak.

“Companies buying back shares at this time might help reassure shareholders,” said Phan Dũng Khánh, investment director of Maybank Kim Eng Securities.

Companies buying their own stocks reduce the total amount of shares on the market, leading to a rise in earnings per share that boosts stock prices.

“To help companies repurchase their shares faster, the State Securities Commission has shortened the process from seven days to just one,” said Trần Văn Dũng, Chairman of the State Securities Commission.

Trần Vũ Minh, son of Trần Đình Long, Chairman of steel giant Hòa Phát Group (HPG), bought back 20 million HPG shares between March 17 to April 16.

HPG is trading at VNĐ18,600 per share.

At VNĐ18,600 per share, the total buyback for 20 million HPG shares would be more than VNĐ372 billion (US$16 million).

Nguyễn Thị Mai Thanh, Chairwoman cum CEO of the Refrigeration Electrical Engineering JSC (REE), bought 15 million REE shares between March 18 to April 17.

The chairwoman is expected to spend over VNĐ450 billion on REE, that is priced at VNĐ29,800 per share.

Thanh’s ownership in the company will increase to 12.2 per cent, equivalent to 37.7 million shares, when the transaction is completed by April 17.

A major shareholder in REE, Platinum Victory Pte Ltd, also registered to buy more than 3 million shares between March 19 and April 17.

Bùi Thành Nhơn, chairman of real estate developer Novaland Investment Group (NVL), has registered to buy five million shares between now and April 18 at a cost of VNĐ255 billion.

After the transaction, he will hold 206 million shares in the company, equivalent to 21.25 per cent of the capital.

On the stock market, NVL is priced at VNĐ51,000 per share.

The board of directors at Sài Gòn Thương Tín Real Estate JSC (SCR) will buy back five million shares at a cost of VNĐ22 billion before April 17.

Among them, General Director Vũ Quốc Thái has registered for 3 million shares, Chairman Nguyễn Đăng Thanh for 1.5 million shares and Vice Chairman Bùi Tiến Thắng for 250,000 shares.

Members of the board of directors at the Thành Thành Công Sugar Joint Stock Company (SBT) have registered to buy 4.5 million SBT shares between March 23 and April 21.

Vice Chairman Phạm Hồng Dương will take 1 million shares, General Director Nguyễn Thanh Ngữ with 1 million shares and independent member Hoàng Mạnh Tiến also with 1 million shares.

Deputy General Director Dương Thị Tô Châu, Deputy General Director Đoàn Vũ Uyên Duyên, and Business Director Huỳnh Văn Pháp have all registered to buy 500,000 shares.

After these transactions, the six members will hold nearly 11 million shares in Thành Thành Công Sugar JSC, accounting for 1.8 per cent of charter capital.

Masan Consumer Holdings Ltd bought 1.3 million shares of Masan Consumer Corporation (MCH) between March 17 to March 31 at a price of VNĐ58,000 per share, worth about VNĐ75 billion.

Tiên Phong Joint Stock Commercial Bank (TPBank) also registered to buy 10 million shares before April 18 at a cost of VNĐ200 billion.

The PAN Group has announced a plan to buy back 21.6 million shares worth nearly 370 billion. — VNS

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