Vinhomes shareholders approve plan to buy treasury stocks

It is estimated that, according to the closing market value on September 5 (VND 43,750/share), Vinhomes will spend VND 16,188 billion to buy treasury shares.

Vinhomes will soon implement the plan to buy treasury stocks after being approved by the General Meeting of Shareholders.

Vinhomes Joint Stock Company (code VHM - HoSE) announced information about the Minutes of vote counting and Resolution of the General Meeting of Shareholders (Getting shareholders' opinions in writing).

The purpose of the consultation is to approve the plan for the company to buy back its own shares (buy treasury shares) to reduce charter capital and related work. Along with that is to approve the amendment and addition of registered business lines.

Accordingly, shareholders approved the purchase of up to 370 million VHM shares, equivalent to 8.5% of the company's outstanding shares. Specifically, the number of votes sent back was 301 (out of a total of 58,083 votes), of which 300 were valid, representing 3.42 billion shares - accounting for 78.52% of voting shares. The approval rate/total valid votes sent back to the company was 99.99%, equivalent to 78.44% of the total number of votes in favor of the proposal to buy back treasury shares.

It is estimated that, according to the closing market value on September 5 (VND43,750/share), Vinhomes will have to spend more than VND16,188 billion. VHM's share price has also increased by about 18% since the time this unit announced the Board of Directors' Resolution on buying treasury shares.

In the 24-year history of the Vietnamese stock market, there has never been a large treasury stock purchase transaction like Vinhomes' plan this time. Especially in recent years, since the Securities Law 2019 took effect, not many enterprises have repurchased their own shares. The reason is that reducing charter capital has become a mandatory regulation for organizations when repurchasing shares from shareholders after the Securities Law and the Enterprise Law were issued in 2019 and both took effect from January 1, 2021.

If the above plan is successfully implemented, the charter capital of this company will decrease from VND 43,543.7 billion to VND 39,843.7 billion.

In the second quarter of 2024, Vinhomes earned about VND 28,218 billion in net revenue, down 13% over the same period in 2023. Of which, real estate transfer activities, the business segment accounting for more than 60% of revenue, only stopped at VND 17,842 billion, 40% lower than the same period last year. Vinhomes Royal Island - a project on Vu Yen Island in Thuy Nguyen district, Hai Phong is the project that is shouldering this business segment.

Meanwhile, financial revenue increased nearly four times compared to the same period last year, reaching VND8,124 billion, mainly thanks to income from investment and business cooperation contracts (VND6,341 billion). Despite a sharp increase in financial expenses, Vinhomes reported that its after-tax profit in the last quarter increased by about 9% compared to the same period last year, reaching VND10,608 billion.

As of June 30, Vinhomes' total assets reached VND494,461 billion, of which debt capital accounted for 58.18%.

Source: https://baodautu.vn/co-dong-vinhomes-thong-qua-phuong-an-mua-co-phieu-quy-d224186.html