Leaked information about the merger between Tran Anh Digital World JSC (Tran Anh—ticker TAG on HNX) and Mobile World Investment Corporation (MWG) caused Tran Anh to suffer an accumulated loss of VND5 billion ($220,053) in the first six months, according to newswire Vnexpress.
|Tran Anh's Board of Directors assigns second quarter losses to leaked information on its merger with MWG
In its financial report for the second quarter, Tran Anh reported a net revenue of VND776 billion ($34.1 million), decreasing 11 per cent on-year, leading to an after-tax deficit of VND7.4 billion ($325,678).
In the first six months of this year, the net accumulated revenue was VND1.82 trillion ($80.1 million). The positive business results in the first quarter helped to offset the bleak performance in the second quarter, bringing accumulated loss in the first half to VND5 billion ($220,053).
In early August, rumours took flight that MWG will acquire Tran Anh. However, at the time, detailed information had yet to be released and a representative of MWG only admitted that MWG “has nearly finished negotiating” on the purchase of an electronics chain.
However, in late August, both parties confirmed the acquisition plan, which was still waiting for shareholders’ approval.
According to the latest information about the M&A deal between Tran Anh and MWG, Tran Xuan Kien, chairman of Tran Anh, said that leaders of both enterprises have reached a mutual agreement on the acquisition plan and Tran Anh’s shareholders approved the sale. Details of the acquisition will be announced by the two sides this October.
Besides, MWG has implemented the first step in taking over the business from Tran Anh. Accordingly, the Board of Directors of Tran Anh has signed the decision to appoint Vu Dang Linh as chief financial officer from October 1, 2017 to September 30, 2018 or until another decision is made. Linh has been CFO of MWG since 2013.
Accordingly, Linh was authorised to sign loan contracts on behalf of Tran Anh as well as manage revenues and expenditures, except for loan contracts which are required to be signed by Tran Anh’s representatives. At the same time, Linh will carry out other management activities as Tran Anh’s CFO and account holder.
Apart from assigning Vu Dang Linh to steer the firm’s corporate finances, Tran Anh also appointed Vo Ha Trung Tin as its new deputy general director. Tin will be in charge of signing transaction deals and agreements between Tran Anh and third parties to support the business and operations of Tran Anh’s system.
Ha Trung Tin is also one of the senior leaders of MWG and is currently director of the Dien may XANH chain in the northern region.