Vinhomes corrects timing for biggest deal in stock market history

Vietnam's stock market is about to record the largest stock buyback deal ever - Photo: QUANG DINH

Vinhomes Joint Stock Company (code VHM) has just announced unusual information to correct the announcement published on October 11.

Specifically, Vinhomes adjusted the time for treasury stock purchases from October 23 to November 21 instead of October 23 to November 22 as previously announced.

Vinhomes said the reason for the change was the need to accurately adjust the number of days allowed for transactions. Accordingly, the transaction end date is 30 days from the start date. The remaining contents remain the same as previously announced.

Previously, the State Securities Commission received documents reporting Vinhomes' share repurchase.

According to the plan, Vinhomes will buy back a maximum of 370 million treasury shares, equivalent to 8.5% of outstanding shares.

The purpose of the buyback is because the market price of VHM shares is lower than the real value of the company, so the buyback is to ensure the interests of the company and shareholders.

The source of capital for the above transaction is from undistributed profit after tax according to the audited semi-annual financial report of 2024. The transaction method is order matching or agreement through a securities company.

At the end of the session on October 16, Vinhomes' VHM shares increased by nearly 0.8% to VND45,000. Thus, it is estimated that at this price, Vinhomes can spend more than VND16,650 billion on transactions.

If the above transaction of Vinhomes is successful, this will be the largest treasury stock purchase deal in the history of Vietnamese securities.

In the audited consolidated financial report for the first half of 2024, Vinhomes holds VND 17,200 billion in cash and short-term investments.

According to ACBS Securities, in the first 6 months of 2024, VHM recorded revenue of VND 36,587 billion. Real estate revenue accounted for 60% of total revenue and reached VND 21,869 billion. Profit after tax in the first 6 months of 2024 reached VND 11,620 billion, completing 34% of the company's plan.

Vinhomes Global Gate (formerly known as Vinhomes Co Loa), with a total area of ​​385ha in Hanoi , including more than 4,100 low-rise units and 12,600 high-rise units) is accepting reservations and is expected to contribute significantly to sales in the second half of 2024.

Source: https://tuoitre.vn/vinhomes-dinh-chinh-lai-thoi-gian-cho-thuong-vu-lon-nhat-lich-su-thi-truong-chung-khoan-20241016175932133.htm