Punishing a female tycoon who 'quietly' bought 26% of Song Hong Corporation's capital

In case an individual plans to purchase voting shares of a public company, resulting in direct or indirect ownership of 25% or more of the voting shares, a public offering must be made - Photo: QUANG DINH

The State Securities Commission has just issued a decision to impose an administrative penalty on Ms. Nguyen Thuong Huyen for not registering a public offering as prescribed by law.

Ms. Huyen bought more than 7 million SHG shares of Song Hong Corporation from July 2023, leading to a change in the share holding ratio after the transaction from 0% to 25.96%, but did not register a public purchase offer with the Securities Commission.

For the above "illegal" purchase, Ms. Huyen was fined 125 million VND and was also subject to remedial measures. Accordingly, she was forced to give up her right to vote directly or through an authorized representative on the shares acquired from the violation.

At the same time, Ms. Huyen was forced to sell shares to reduce her holding ratio below the level required for a public offering for the violation within a maximum period of 6 months from the date the decision to apply this measure takes effect.

According to the semi-annual management report of Song Hong Joint Stock Corporation, Ms. Nguyen Thuong Huyen is the major shareholder holding the largest number of shares, with a holding ratio of 25.96%.

In addition to Ms. Huyen, major shareholders of this enterprise include Ms. Tran Bich Thuy and Ms. Nguyen Thi Huong, who both own 24.5% of capital, followed by Ms. Tran Thi Thanh Ha, who holds 9.56%.

On the stock market, SHG shares are subject to trading restrictions, with the market price at VND 1,900/share, down about 27% over the past quarter.

Song Hong Corporation has recently recorded many changes in senior personnel. Mr. Tran Huyen Linh recently submitted his resignation from the position of Chairman of the Board of Directors after 8 years of service.

How does Song Hong Corporation do business?

Regarding business situation, according to the consolidated financial report for 2023, this company had a loss after tax of more than 70 billion VND, down from the loss of nearly 178 billion VND in 2022.

Looking back at the data, since 2014, SHG has had 9 years of continuous losses. Because of that, by the end of 2023, the corporation had accumulated losses of up to 1,336 billion VND. The equity was negative more than 1,000 billion VND.

In the 2023 mid-year consolidated balance sheet, the enterprise recorded liabilities of VND 2,143 billion, exceeding total assets (VND 1,113 billion).

In the audited financial statements for 2023, the auditor also expressed an exception opinion on some of the corporation's payable and receivable debts.

"The continued operation of the corporation depends on the recovery of debts and improvement of the efficiency of the premises rental business, and capital support from shareholders.

The above conditions indicate the existence of a material uncertainty that may cast significant doubt on the ability to continue as a going concern," the auditor emphasized.

Also related to SHG, the Ministry of Construction auctioned off all 49.04% of its capital holding, Song Hong Real Estate Investment Joint Stock Company (Song Hong Land) became the new shareholder.

Source: https://tuoitre.vn/xu-phat-mot-nu-dai-gia-am-tham-mua-26-von-tong-cong-ty-song-hong-20241011092652428.htm