Foreign shareholders nominated for Traphaco management board

The two new large shareholders want to see better representation of their interests in Traphaco

This is one of the questions put to shareholders at Traphaco’s 2018 extraordinary general shareholders’ meeting.

Notably, Super Delta nominated Kim Dong Hyu, who is the chief representative of Daewoong Pharmaceutical Co., Ltd.’s representative office in Vietnam, as a member of the management board.

Besides, Magbi Fund nominated Lee Choonghwan, who is the fund manager of Mirae Asset Capital cum director of Magbi Fund.

In November 2017, Magbi Fund and Super Delta became large shareholders of Traphaco after acquiring 16.63 million shares, equaling more than 40 per cent of its charter capital.

Notably, Daewong, through Super Delta, completed the purchase of 6.3 million Traphaco shares, equaling a 15 per cent stake. On the same day, Magbi Fund also bought nearly 10.4 million Traphaco shares, equivalent to 25.6 per cent of the charter capital.

Previously, Mekong Capital announced that its Vietnam Azalea Fund (VAF) divested its entire 24.99 per cent stake in Traphaco at VND141,500 dong ($6.23) per share for a total consideration of more than $64.5 million.

Thereby, 25 of the 40 per cent held by Magbi Fund and Super Delta came from VAF’s divestment.

In late-June, the Hanoi Department of Taxation issued a fine of nearly VND1 billion ($44,000) to Traphaco.

Due to the erroneous declaration of value-added tax (VAT) and corporate income tax (CIT), Traphaco was fined for 20 per cent of the difference between its declared and actual tax obligations, equalling VND159 million ($7,000), according to Article 1 of the Law on Amendments and Supplements of Articles of the Law on Tax Administration.

The company’s tax burden increased by VND795 million ($35,000) after the inspection, including VND715 million ($31,500) in CIT and VND80 million ($3,500) in VAT.

Traphaco also has to pay VND20 million ($880) in penalty for late payment (as of June 15, 2018). Traphaco has to calculate and pay the additional late payment fees applicable between June 16 and the time the company repays the state.