LDG shares have more than 42 million units left to sell after news of the Chairman's arrest

On November 29, 2023, the Investigation Police Agency of Dong Nai Province Police issued a decision to prosecute the accused and an arrest warrant for temporary detention against Mr. Nguyen Khanh Hung, born in 1978 - Chairman of the Board of Directors, legal representative of LDG Investment Joint Stock Company (HoSE: LDG) for the crime of "Deceiving customers". The decisions to prosecute the accused and the arrest warrant for temporary detention were approved by the People's Procuracy of Dong Nai Province.

On November 30, 2023, the Provincial Police Investigation Agency coordinated with the Provincial People's Procuracy to execute a search warrant at the residence and workplace of the accused Nguyen Khanh Hung.

Before issuing the decision to prosecute, on November 21, the Investigation Police Agency of Dong Nai Province Police issued a Decision to supplement the Decision to prosecute criminal case No. 32 on the act of "Deceiving customers" occurring at the Tan Thinh residential area project to conduct an investigation to clarify.

After the news that Chairman of the Board of Directors Nguyen Khanh Hung was temporarily detained, at the opening session on December 1, LDG shares dropped sharply (6.76%) to VND3,450/share and had a floor sell order of 42.5 million units in the morning session. On the other hand, this code is currently matching orders of 792,600 units with a total value of nearly VND2.73 billion.

Compared to the most recent peak on August 15 of VND6,400/share, LDG's current price has decreased by 47%. However, compared to the bottom from the beginning of the year in early November of VND3,360/share, LDG's current price has increased by 3%.

LDG stock price movement (Source: FireAnt).

Previously, on August 15, 2023, Mr. Nguyen Khanh Hung attracted attention in the stock market due to his "secret sale" of LDG shares but did not report to the Ho Chi Minh City Stock Exchange (HoSE) about the planned transaction.

Therefore, the State Securities Commission issued Decision No. 715 on administrative sanctions against the Chairman of LDG by imposing a fine of more than VND 520 million, canceling transactions of more than 2.6 million LDG shares and suspending securities trading activities for a period of 4 months from August 25, 2023. To date, Mr. Hung is still serving his sentence of trading suspension.

The Investigation Police Agency of Dong Nai Province Police issued a Decision to prosecute the accused and executed an Arrest Warrant to detain the accused Nguyen Khanh Hung.

In the explanatory document, Mr. Hung said that on August 15, 2023, he sold more than 2.6 million LDG shares, but because he was on a business trip from August 8 to 15, Mr. Hung could not directly make the information disclosure and assigned his secretary to make the information disclosure.

However, because the new staff did not fully understand the regulations, it led to errors, delaying the information disclosure process. On August 15, 2023, when the error was discovered, Mr. Hung confirmed that he requested additional processing to ensure compliance with regulations and stopped all transactions.

At the annual meeting of LDG company held on August 23, 2023, Mr. Hung also apologized to shareholders and affirmed that there was no conspiracy in this matter. The Chairman of LDG said that in the past, he and the leaders had to use personal assets to help the company in difficult times.

According to the consolidated financial statements for the third quarter of 2023, the company's net revenue was negative VND 0.55 billion, along with a sharp decline in financial revenue. As a result, LDG suffered a net loss of VND 65 billion in the third quarter of 2023, far from the profit of VND 1.6 billion in the same period last year. With consecutive losses in the first 3 quarters of 2023, LDG's accumulated net loss in the first 9 months was more than VND 209 billion, while in the same period it had a profit of more than VND 8 billion.

Despite the unfavorable business situation, LDG's Board of Directors recently approved a plan to issue more than 12.8 million shares under the employee stock option program (ESOP), accounting for 5% of outstanding shares.

Notably, the issuance price is 0 VND/share. The expected implementation period is from the fourth quarter of 2023 to the first quarter of 2024, after being approved by the State Securities Commission. The capital source for implementation is taken from the accumulated undistributed profit after tax up to the issuance date on LDG's audited consolidated financial statements.

According to Chairman Nguyen Khanh Hung, the purpose of issuing bonus shares is to enhance the role, responsibility and benefits of employees in the company, attract and retain talent, link the work efficiency of employees with the common interests and development of the whole company, and create motivation for employees .

Source: https://www.nguoiduatin.vn/co-phieu-ldg-du-ban-san-hon-42-trieu-don-vi-sau-tin-chu-tich-bi-bat-a638682.html