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.

Fish is processed by workers at Hùng Vương Corporation. Hùng Vương stocks (HVG) suddenly increased sharply from mid-October this year, from VNĐ2,720 per share in October 15 to finish Wednesday at VNĐ8,500 per share. — Photo tinnhanhchungkhoan

Transactions will be conducted via order matching or an agreement method from December 11 this year to January 9 next year.

The selling price will not be lower than VNĐ4 per share (US$0.2). If the sale is successful, the company expects to collect at least VNĐ20 billion ($860,000).

Hùng Vương bought these treasury shares during May-July 2016 with the average purchase price of VNĐ10,218 per share, equivalent to a total value of VNĐ51 billion. With this price, the company might have lost VNĐ31 billion after more than three years of holding.

Hùng Vương stocks (HVG) suddenly increased sharply from mid-October this year, from VNĐ2,720 per share in October 15 to finish Wednesday at VNĐ8,500 per share.

Facing many difficulties, HVG has had to sell many big assets. In 2018, the company had to liquidate its real estate properties and dissolve its real estate arm An Lạc Real Estate JSCin which it held 76 per cent of the capital.

It also divested its entire ownership of 54 per cent capital in Sao Tạ Foods, cut its stake in Việt Thắng Aquafeed from 90.36 per cent to 33.16 per cent and sold Tân Tạo Cold Storage 2.

Despite the sale of assets, the company is still in financial trouble, having received disappointing results from the 14th administrative review (POR14) for antidumping duty in the US with a tax of up to $3.87 per kg, compared to zero tax in the preliminary results.