Companies race to buy back shares as stocks tumble
Dozens of companies are racing to buy back shares to stabilise prices amid the COVID-19 outbreak.
Dozens of companies are racing to buy back shares to stabilise prices amid the COVID-19 outbreak.
“Companies buying back shares at this time might help reassure shareholders,” said Phan Dung Khanh, investment director of Maybank Kim Eng Securities.
Companies buying their own stocks reduce the total amount of shares on the market, leading to a rise in earnings per share that boosts stock prices.
“To help companies repurchase their shares faster, the State Securities Commission has shortened the process from seven days to just one,” said Tran Van Dung, Chairman of the State Securities Commission.
Tran Vu Minh, son of Tran Dinh Long, Chairman of steel giant Hoa Phat Group (HPG), bought back 20 million HPG shares between March 17 to April 16.
HPG is trading at VND18,600 per share.
At VND18,600 per share, the total buyback for 20 million HPG shares would be more than VND372 billion (US$16 million).
Nguyen Thi Mai Thanh, Chairwoman cum CEO of the Refrigeration Electrical Engineering JSC (REE), bought 15 million REE shares between March 18 to April 17.
The chairwoman is expected to spend over VND450 billion on REE, that is priced at VND29,800 per share.
Thanh’s ownership in the company will increase to 12.2 per cent, equivalent to 37.7 million shares, when the transaction is completed by April 17.
A major shareholder in REE, Platinum Victory Pte Ltd, also registered to buy more than 3 million shares between March 19 and April 17.
Bui Thanh Nhon, chairman of real estate developer Novaland Investment Group (NVL), has registered to buy five million shares between now and April 18 at a cost of VND255 billion.
After the transaction, he will hold 206 million shares in the company, equivalent to 21.25 per cent of the capital.
On the stock market, NVL is priced at VND51,000 per share.
The board of directors at Sai Gon Thuong Tin Real Estate JSC (SCR) will buy back five million shares at a cost of VND22 billion before April 17.
Among them, General Director Vu Quoc Thai has registered for 3 million shares, Chairman Nguyen Dang Thanh for 1.5 million shares and Vice Chairman Bui Tien Thang for 250,000 shares.
Members of the board of directors at the Thanh Thanh Cong Sugar Joint Stock Company (SBT) have registered to buy 4.5 million SBT shares between March 23 and April 21.
Vice Chairman Pham Hong Duong will take 1 million shares, General Director Nguyen Thanh Ngu with 1 million shares and independent member Hoang Manh Tien also with 1 million shares.
Deputy General Director Duong Thi To Chau, Deputy General Director Doan Vu Uyen Duyen, and Business Director Huynh Van Phap have all registered to buy 500,000 shares.
After these transactions, the six members will hold nearly 11 million shares in Thanh Thanh Cong Sugar JSC, accounting for 1.8 per cent of charter capital.
Masan Consumer Holdings Ltd bought 1.3 million shares of Masan Consumer Corporation (MCH) between March 17 to March 31 at a price of VND58,000 per share, worth about VND75 billion.
Tien Phong Joint Stock Commercial Bank (TPBank) also registered to buy 10 million shares before April 18 at a cost of VND200 billion.
The PAN Group has announced a plan to buy back 21.6 million shares worth nearly 370 billion. — VNS
