Why do the three brothers of Tan Thanh Do Group want to part ways with Saigon Bus?

Recently, the Hanoi Stock Exchange (HNX) announced a series of divestment information of 3 major shareholders at Saigon Bus Joint Stock Company (Saigon Bus, stock code: BSG).

Specifically, Tan Thanh Do Group Joint Stock Company, an organization related to Mr. Tran Ngoc Dan, member of the Board of Directors of Saigon Bus, has registered to sell all 14.4 million BSG shares (equivalent to 24.05%) to meet financial needs for investment and business expansion.

At Tan Thanh Do, Mr. Dan holds the position of Chairman of the Board of Directors. Along with that, Mr. Dan's two brothers-in-law, Mr. Pham Anh Hung and Mr. Nguyen Van Thanh, also simultaneously registered to sell all the BSG shares they were holding, respectively 9 million (15%) and 4.5 million (7.5%) units for personal financial needs.

Thus, the total number of BSG shares that these 3 people registered to sell is 27.9 million units (nearly 47% of capital). The above transactions are expected to take place from May 16 to June 13 by negotiation and order matching.

If this deal is successful, Saigon Bus’ shareholder structure will change significantly. Currently, Saigon Transport Mechanical Corporation (SAMCO) is the largest shareholder in this enterprise, holding 49% of the capital.

After the news that major shareholders had divested all their capital, BSG shares ended the session on May 15th sharply decreasing (more than 12.5%), down to 12,500 VND/share. Temporarily calculating at this price, the total value of the above shares is estimated at more than 348 billion VND.

Saigon Bus' business situation is growing strongly again, but by the first quarter of 2025, business will decline again.

According to records, the simultaneous divestment of 3 major shareholders took place right after Saigon Bus announced its financial report for the first quarter of 2025 with not very optimistic numbers.

Specifically, at the end of the first quarter, the company only recorded net revenue of more than VND111 billion, down 25% compared to the same period last year. Therefore, after deducting additional expenses, the company's pre-tax profit was only VND1.5 billion, down more than 84% compared to the same period.

By the end of the first quarter, Saigon Bus's cash and cash equivalents portfolio also decreased sharply, more than 36% compared to the beginning of 2025, down to VND 70.7 billion.

Meanwhile, in recent years, this business has started to make a profit again and its profits have continuously peaked in 2023 and 2024 after a period of heavy losses (from 2018 to 2021).

Notably, in 2025, Saigon Bus plans to go backwards in its business plan with expected revenue of nearly VND 563 billion and pre-tax profit of more than VND 16 billion, down 11% and 64% respectively compared to 2024.

Thus, by the end of the first quarter of 2025, Saigon Bus has only completed nearly 20% of its revenue target and more than 9% of its annual profit target.

Saigon Passenger Transport Joint Stock Company is a company formed through the equitization process of the state-owned enterprise Saigon Passenger Transport Company Limited with the business line of public passenger transport by car, under contract, fixed route...

Regarding Mr. Tran Ngoc Dan, besides holding the position of Member of the Board of Directors at Saigon Bus and Chairman at Tan Thanh Do Group, he is also the head of City Auto Joint Stock Company (stock code: CTF).

City Auto is the authorized distributor of Ford and Hyundai in Vietnam...

Previously, this company approved the resignation of Mr. Tran Lam (Mr. Dan's son) from the position of general director according to his personal wishes.

According to the provisions of the Enterprise Law, for public companies, the general director cannot be a family relative of the Chairman of the Board of Directors.

Source: https://nld.com.vn/vi-sao-3-anh-em-tap-doan-tan-thanh-do-muon-chia-tay-saigon-bus-196250515210753091.htm