Hoa Sen had to sell all treasury shares he was holding before buying 22 million new shares

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According to the reply in Official Letter No. 405 / UBCK-QLCB of the State Securities Commission (SSC) and according to the provisions in Clause 4, Article 310 of Decree 155/2020 / ND-CP dated December 31, 2020, the corporation They have treasury shares purchased before the effective date of the Securities Law 2019 (January 1, 2021), and may sell treasury stocks, use treasury shares as bonus shares according to the order, procedures and provisions in Securities Law 2016.

The above companies “are not allowed to redeem their own treasury shares until the processing of previously purchased treasury shares” is completed.

Therefore, Hoa Sen Board of Directors has approved the policy of selling all treasury shares purchased by this group before the effective date of the Securities Law in 2019 to ensure that the conditions for purchasing treasury stocks are met and to reduce Authorized capital.

The number of treasury shares registered to sell by Hoa Sen is 327,100 units, by matching order or by agreement at the City Stock Exchange. HCM City.

The transaction is scheduled to be completed in March 2021. Hoa Sen Group will collect shareholders’ opinions in writing to submit to the General Meeting of Shareholders for approval of the policy of repurchasing its own shares and reducing its charter capital in accordance with the law.

The expected closing date for the list of shareholders is March 9, 2021. The time for the consultation is from March 20, 2021 to April 5, 2021.

Thus, after completing the sale of all 327,100 treasury shares held and approved by the General Meeting of Shareholders to buy treasury shares, Hoa Sen will buy back 22 million HSG shares as previously expected to protect profits. Investors’ benefit when translating Covid-19 affects price movements of HSG.

In the fiscal year 2020-2021, Hoa Sen Group targets an output of 1,800,000 tons, an increase of 11%; revenue of 33,000 billion, up 20% and profit after tax 1,500 billion, up 30% over the same period.

At the end of the first quarter of the fiscal year 2020-2021, Hoa Sen reported that revenue and profit after tax were VND9,099.6 billion and VND 572 billion, respectively, up 38% and up 215% over the same period. before.

HSG opened the session on February 18, 2021 at the price of VND 25,100 / share. Market capitalization is estimated at over 11,200 billion VND.

Source: vietnamfinance.vn – Translated by fintel.vn