Hoanh Son Group has increased its stake in Sao Vang Rubber by more than 216 billion VND.

DNHN - In 2019, Vinachem divested 15% of its capital in SRC during this period, thereby facilitating Hoanh Son Group's ascent to the position of major shareholder.

From November 29 to December 1, Hoanh Son Group Joint Stock Company acquired an additional 7.2 million shares of SRC (Sao Vang Rubber Joint Stock Company), bringing its total ownership to 14 million units, which represents 50.22 percent of the company's capital. Hoanh Son Group has surpassed Vinachem in the size of ownership of SRC with this action.

Six individuals, including Mr. Ho Viet Hung, Ms. Nguyen Thi Hong, Mr. Nguyen Tien Dung, Mr. Nguyen Tien Ngoc, Mr. Nguyen Huy Hung, and Ms. Tran Thi Thuy Hang, reached an agreement to purchase SRC shares. Mr. Ho Viet Hung decreased his ownership stake to 1.28% after the transaction, whereas Ms. Nguyen Thi Hong and Mr. Nguyen Tien Dung each decreased their ownership stake to 0%.

The price of SRC shares has exhibited a positive trend since September 1st. Presently, each share is valued at over 29,000 VND, representing a substantial increase of 70%.

Sao Vang Rubber is an organization that boasts a substantial and illustrious heritage within the rubber sector of Vietnam. However, the profit generated by the company's operations has declined since 2009. In 2019, Vinachem divested 15% of its capital in SRC during this period, thereby facilitating Hoanh Son Group's ascent to the position of major shareholder. From December 28, 2019, until the present, Mr. Pham Hoanh Son, Chairman of the Board of Directors of SRC and General Director of Hoanh Son Group, has held the position of Chairman of the Board of Directors of SRC.

Sao Vang Rubber reported revenues of 709 billion VND for the initial nine months of 2023, reflecting a marginal growth in comparison to the corresponding period of the previous year. Nevertheless, a mere 16 billion VND in profit after taxes was realized, a 57% decline due to the high cost of sales.

PV (t/h)