Thu Duc Housing divests from Sen Vàng Securities

Tuesday, Jun 15, 2021 16:36

Logo of Thu Duc Housing on its building in Nguyen Thai Binh Ward, District 1, HCM City.— Photo

Thu Duc Housing Development Corporation (TDH) has approved a resolution on the policy of divesting capital in the associated company.

Accordingly, Thu Duc will transfer all 3.04 million shares of Golden Lotus (Sen Vang) Securities Corporation with the stock ticker GLS, equivalent to 22.49 per cent of the charter capital at Sen Vang. The deal is to be executed within two months of the policy being approved.

The transfer price is not lower than VND5,000 per unit. At this price, Thu Duc is expected to earn about VND15.2 billion (US$662,620).

In the consolidated financial statements, as of January 31, the company recorded an investment of VND11.7 billion (US$510,043) in Sen Vang, equivalent to VND3,849 per share. Therefore, if the deal is successful even at the minimum price set, Thu Duc will be profitable.

On the stock market, TDH shares, listed on the Ho Chi Minh Stock Exchange (HoSE), have been on a downward trend since late 2020 after the real estate developer announced the decision on sanctioning administrative violations and reclaiming VAT refund for 2018 and 2019 amounted to more than VND396 billion (US$12.3 million).

Thu Duc has filed a lawsuit at the People's Court of HCM City to consider the cancellation of decisions No. 5438 and 5439 of the Department of Taxation of HCM City. The case is still being considered for settlement according to regulations.

Previously, TDH shares were put on HoSE’s warning list since May 28. The reason is that the company recorded a net loss of more than VND363 billion (US$15.8 million) in 2020 and the accumulated loss as of the end of last year was VND143 billion (US$6.2 million).

On Tuesday morning, TDH shares were traded at VND7,230 per share, down 23.4 per cent from the beginning of this year. — VNS


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