Nawaplastic Industry Co., Ltd. makes massive savings by acquiring the shares of Binh Minh Plastic (BMP) step-by-step rather than buying a major share volume in a single purchase.
|Nawaplastic saves massive money from acquiring Binh Minh Plastic step by step |
Nawaplastic completed the purchase of an additional 401,010 BMP shares to increase its holding to 42.75 million shares.
The transactions were conducted on May 23-25. The deal took the Thai investor closer to dominating BMP by increasing its stake to 52.23 per cent.
During the transactions on May 23-25, the highest price of BMP’s shares was VND60,300 ($3.11), thus, Nawaplastic spent approximately VND24.18 billion ($1.06 million) on the deal.
Most recently, on May 14-15, Nawaplastic spent approximately VND10 billion ($438,692) on buying an additional 170,000 BMP shares to increase its holding in the firm from 50.89 to 51.1 per cent. The highest price of the share on May 14-15 was VND60,000 ($3.10).
Following the recent value of the BMP ticker, it is easy to see that the share value was lower than the initial price at the auction organised on March 9.
Notably, according to information published by the Ho Chi Minh City Stock Exchange (HSX), at the auction on March 9, two investors joined the auction: Nawaplastic and a domestic individual. As a result, Nawaplastic spent approximately VND2.329 trillion ($102.33 million) on buying 24.139 million of the 24.159 million shares on offer at the initial price of VND96,500 ($4.24).
If we compared the price of VND96,500 ($4.24) that Nawaplastic paid at the auction and the VND60,000 ($3.10) paid in recent purchases, we can see that Nawaplastic saved a massive amount of money.
In case BMP share’s value on the stock exchange continues to decrease and Nawaplastic keeps increasing its holding in the firm, it will make even higher savings compared to a one-time bulk puchase.