Yeah1 shares soar after officers put stakes on sale to strategic investor

Wednesday, Feb 12, 2020 07:32

Media firm Yeah1's chairman Nguyen Anh Nhuong Tong at the company's debut on the Ho Chi Minh Stock Exchange on June 26, 2018. — Photo

Media company Yeah1 shares surged 6.9 per cent on Tuesday after its chairman and CEO posted shares for sale.

The two officers want to offload more than six million shares in total, or a 19.34 per cent stake, to a strategic investor.

Chairman Nguyen Anh Nhuong Tong has signed up to sell 5.05 million shares to cut his stake in the company to 25.52 per cent from 41.66 per cent.

CEO Dao Phuc Tri plans to transfer 1.1 million shares to slash his ownership to 4.78 per cent from 8.3 per cent.

If the deals go through, they will remain the two biggest shareholders in Yeah1.

Other major shareholders in the company are Ancla Asset Ltd and DFJ VinaCapital Venture, which own 10.93 per cent and 9.74 per cent, respectively.

Nearly 23.7 per cent of Yeah1's capital is in the hands of minor shareholders, while treasury shares account for 5.67 per cent.

Yeah1 shares debuted on the Ho Chi Minh Stock Exchange as YEG on June 26, 2018 at VND250,000.

The shares then rocketed to near VND350,000 per shares.

In April 2019, the world’s largest video sharing platform YouTube terminated the contract with Yeah1 as the Vietnamese firm had violated YouTube’s content management policy.

The termination stirred the market and caused a sell-off at Yeah1 shares. The company shares then free-falled from VND350,000 to VND40,100 on Tuesday.

The contract termination also dragged on Yeah1’s earnings. The company recorded VND435 billion worth of revenue in the fourth quarter of 2019, down 32 per cent on-year.

Yeah1 reported a loss of nearly VND158 billion in the fourth quarter.

Total revenue in 2019 was nearly VND1.45 trillion with more than 72 per cent of the revenue coming from its digital sharing platform.

High financial expense, which was caused by increased risk provision, caused Yeah1 a loss of VND372 billion in 2019. — VNS

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