Chairman of Dien Tay Bac wants to increase ownership after more than a month as leader

The Chairman of the Northwest Power Company wants to increase his ownership stake after more than a month in office.

The head of the Board of Directors of Tay Bac Electric wants to buy 1.53 million NED shares to increase his ownership stake from 11.54% to 15.32% after more than a month in the leadership position.

In a notice sent to the Hanoi Stock Exchange, Mr. Tran Van Ngu, Chairman of the Board of Directors of Tay Bac Power Investment and Development Joint Stock Company (stock code NED), stated that he plans to execute this transaction through both order matching and negotiated transactions from September 20th to 25th. If successful, Mr. Ngu will increase his stake in Tay Bac Power from 11.54% (4.67 million shares) to 15.32% (6.2 million shares).

Based on the closing price of 6,900 VND per share on September 13th, it is estimated that Mr. Ngu would need to spend more than 10.56 billion VND to complete the transaction.

NED shares have fallen 21.5% from their year-to-date high set in April 2024. However, compared to the price at the beginning of this year, the current market price is 47% higher.

Mr. Ngu was appointed Chairman of the Board of Directors of Tay Bac Electric for the 2020-2025 term from July 31st, replacing Mr. Tran Van Huyen at this year's General Shareholders' Meeting.

Also at the meeting, the Board of Directors of Tay Bac Power approved Mr. Ngu and related parties to purchase/receive the transfer of more than 2 million shares from Mr. Tran Van Phuc, more than 2 million shares from Mr. Luu Van Ho, 800,000 shares from Ms. Dang Thi Doan Trang, 868,000 shares from Ms. Nguyen Thi Kim Tuyen, and more than 2 million shares from Ms. Tran Ngoc Dinh without the need for a public tender offer.

Besides Mr. Ngu, An Khanh Hung Investment and Development Joint Stock Company - where Mr. Ngu holds the position of General Director - and related parties received the transfer of 2 million shares from Mr. Tran Van Trung and 400,000 shares from Mr. Nguyen Hong Minh without having to conduct a public tender offer.

Tay Bac Power Company was established in June 2006, primarily engaged in the construction of hydroelectric power plants and the production and sale of commercial electricity. The company's charter capital currently stands at VND 405 billion, while its market capitalization is less than VND 300 billion.

In the first six months of the year, Tay Bac Power recorded net revenue of VND 32.9 billion, a decrease of 8.8% compared to the same period last year. Pre-tax profit reached VND 7.7 billion and after- tax profit was approximately VND 5.9 billion, respectively 22.2 times and 70.2 times higher than the same period last year.

This year, the company aims for consolidated revenue of over 78 billion VND, a 7% increase compared to last year. Pre-tax profit is expected to reach 12.1 billion VND and after- tax profit 9.6 billion VND, representing increases of 2.3 times and 2.7 times respectively compared to the same period last year.

After six months, Tay Bac Power has achieved 42.2% of its revenue target. Profit targets have been reached at 63.5% and 61.4%, respectively.

The management stated that this year, the company has no plans to invest in new hydropower projects or expand production and equipment purchases. Instead, the company will focus on managing and restructuring investments to ensure a balanced capital structure.

Total assets as of the end of Q2/2024 reached over VND 716 billion, a slight decrease compared to VND 730 billion at the beginning of the year. Liabilities amounted to approximately VND 252 billion, the majority of which were long-term debt. Equity was over VND 464 billion, and undistributed after-tax profit reached VND 56.8 billion.

Source: https://baodautu.vn/chu-tich-dien-tay-bac-muon-tang-so-huu-sau-hon-mot-thang-lam-lanh-dao-d224916.html