Seafood processor Hùng Vương to sell 5 million treasury shares

HÀ NỘI — Hùng Vương Corporation (HVG), one of the biggest seafood processors in Việt Nam, plans to sell five million treasury shares to raise capital to supplement business activities and enhance operational efficiency.

Transactions will be conducted via order matching or an agreement method from December  一 一 this year to January  九 next year.

The selling price will not be lower than VNĐ 四 per share (US$0. 二). If the sale is successful, the company expects to collect at least VNĐ 二0 billion ($ 八 六0,000).

Hùng Vương bought these treasury shares during May-July  二0 一 六 with the average purchase price of VNĐ 一0, 二 一 八 per share, equivalent to a total value of VNĐ 五 一 billion. With this price, the company might have lost VNĐ 三 一 billion after more than three years of holding.

Hùng Vương stocks (HVG) suddenly increased sharply from mid-October this year, from VNĐ 二, 七 二0 per share in October  一 五 to finish Wednesday at VNĐ 八, 五00 per share.

Facing many difficulties, HVG has had to sell many big assets. In  二0 一 八, the company had to liquidate its real estate properties and dissolve its real estate arm An Lạc Real Estate JSCin which it held  七 六 per cent of the capital.

It also divested its entire ownership of  五 四 per cent capital in Sao Tạ Foods, cut its stake in Việt Thắng Aquafeed from  九0. 三 六 per cent to  三 三. 一 六 per cent and sold Tân Tạo Cold Storage  二.

Despite the sale of assets, the company is still in financial trouble, having received disappointing results from the  一 四th administrative review (POR 一 四) for antidumping duty in the US with a tax of up to $ 三. 八 七 per kg, compared to zero tax in the preliminary results. — VNS