VinaCapital divests shares from KDH

May 20, 2021 | 12:30

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Vietnam Ventures Ltd., a fund managed by VinaCapital, registered to sell 7.7 million shares of Khang Dien House Trading and Investment JSC (KDH) to decrease its ownership rate to 3.67 per cent.

According to the 2020 annual report of KDH, the total ownership of VinaCapital was about 13.3 per cent by the end of 2020

Vietnam Ventures Ltd. owns more than 28.2 million KDH shares, equivalent to 5.05 per cent of charter capital. If the transaction succeeds, the fund will still hold 20.5 million shares, equivalent to an ownership rate of 3.67 per cent and will no longer be a major shareholder of KDH.

The transaction will be conducted from May 5 to June 18. According to the fund, the transaction is to restructure its investment portfolio. Estimated at the current price (VND36,600 or $1.60 a share on the morning of May 20), Vietnam Ventures Limited can collect over VND281 billion ($12.2 million).

Notably, since the beginning of the year, funds managed by Dragon Capital have also been selling down KDH in their portfolio.

At the beginning of the year, funds belonging to Dragon Capital group held about 84.1 million KDH shares, equivalent to a 15.05 per cent. Now, the group holds 55.2 million shares, about 9.88 per cent.

According to the 2020 annual report of KDH, the total ownership of VinaCapital was about 13.3 per cent by the end of 2020.

At the end of the first quarter, KDH recorded net revenue of VND836 billion ($36.35 million), up 19.3 per cent over the same period in 2020. Thanks to a sharp drop in selling and financial expenses, KDH’s after-tax profit increased by more than 33 per cent compared to the first quarter of 2020, reaching more than VND206 billion ($8.96 million).

In 2021, Khang Dien House sets a revenue target of VND4.8 trillion ($208.7 million), with after-tax profit of VND1.2 trillion ($52.17 million), up 6 and 4 per cent compared to 2020.

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