Kinh Bac Urban Development Corporation (KBC) has just announced that its Chairman of the Board, Mr. Dang Thanh Tam, has registered to transfer over 86 million shares, worth approximately 2,300 billion VND, to a private company.

This is the next notable development following the announcement in September by Mr. Dang Thanh Tam's company of a cooperation agreement with Donald Trump's Trump Organization to invest $1.5 billion in Hung Yen province.

Previously, KBC approved the offering of 250 million shares to professional securities investors, expected to raise 6,250 billion VND. Recently, Mr. Dang Thanh Tam's son and daughter have also begun participating in business activities within his family's business ecosystem.

Regarding the share transfer to a private company, according to KBC, on November 19th, Mr. Dang Thanh Tam registered to transfer 86.55 million shares (out of a total of nearly 138.67 million shares he currently holds) to DTT Investment and Development Joint Stock Company to contribute capital to this company in the form of shares. The expected implementation period is from November 25th to December 24th.

Prior to the transaction, DTT Company did not hold any shares in KBC. If the transaction is successful, Mr. Dang Thanh Tam's private company will become the new major shareholder of Kinh Bac, with an ownership stake of 11.27%.

At the close of trading on November 19th, KBC shares fell sharply for the second consecutive session, reaching 26,600 VND/share. If the transaction is successful, the number of shares Mr. Tam transfers to his private company will be worth approximately 2,300 billion VND.

If the transaction goes through, Mr. Tam will directly hold more than 52.1 million KBC shares, equivalent to 6.79% of the company's shares.

DangThanhTamHH1OK.jpg
Mr. Dang Thanh Tam, Chairman of KBC. Photo: HH

DTT Investment and Development Joint Stock Company was newly established at the beginning of this year, specializing in real estate business. Initially, Mr. Tam held over 90% of DTT's shares. However, as of November 19th, Mr. Tam only held 18.06% of DTT's capital.

It is quite common for business leaders to transfer their shares to private companies, especially those listed on the stock market. Businesspeople tend to consolidate their assets under one ownership for easier management and to gain other benefits.

Previously, many businessmen such as Nguyen Duy Hung (SSI), Dang Van Thanh, Le Phuoc Vu (HSG), Nguyen Duc Tai (MWG), Mr. and Mrs. Tran Kim Thanh (KDC)... also transferred their shares to their own companies.

This allows entrepreneurs to avoid paying tax on cash dividends (5%), and personal income tax on securities transfers (0.1% on the sale value), instead paying corporate income tax (commonly 20%).

In addition to the cost of goods sold, businesses are allowed to deduct various expenses such as entertainment, travel, marketing, sales, etc. If a business incurs losses, these losses can be registered for carryforward (loss transfer) within 5 years…

The transfer of KBC shares to Mr. Dang Thanh Tam's private company is noteworthy after the Trump Organization - a conglomerate owned by Donald Trump - and Hung Yen Hotel Services Joint Stock Company - a subsidiary of Kinh Bac Urban Development - announced on September 25th a cooperation and investment in a hotel, golf course, and residential complex worth approximately $1.5 billion in Hung Yen.

The complex includes a 54-hole Vvip golf course, integrated with high-end resorts and villas offering services to the highest standards of the Trump Organization for special events and high-level conferences. In addition, there is a system of hotels and a modern urban and residential complex.

Following KBC's handshake with Donald Trump, Dang Nguyen Nam Anh, the second son of Dang Thanh Tam, made his first public appearance as the representative of KBC's office in Hoan Kiem District, Hanoi .

Previously, Ms. Dang Nguyen Quynh Anh (born in 1996) - Mr. Tam's daughter - purchased KBC shares and became a shareholder of her father's company. Currently, Ms. Quynh Anh owns more than 13.3 million KBC shares and is a member of the Board of Directors.

Mr. Dang Thanh Tam and his wife, Ms. Nguyen Thi Kim Thanh, have four children: Dang Nguyen Quynh Anh, Dang Nguyen Nam Anh, Dang Nguyen Duy Anh, and Dang Nguyen Bao Anh.

Tycoon Dang Thanh Tam is hoarding 9.5 trillion VND, awaiting an investment boost from the Trump family . Kinh Bac Urban Development (KBC), owned by tycoon Dang Thanh Tam, earns huge profits from industrial park operations and bank interest, but is also heavily indebted. This major industrial real estate developer has a promising project with the Donald Trump family.