Viet Capital Securities spent VND 152 billion to buy TTC Land shares: It is not only financial investment but also support the strategy in the capital call of partners

With the purchase of 19 million shares of TTC Land worth VND 150 billion, Ban Viet Securities became the very first independent major shareholder of this real estate enterprise.

In the end of trading session on June 12th ,2019, Viet Capital Securities Joint Stock Company (HOSE: VCI) officially became the major shareholder of Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land, HOSE: SCR) through the official ownership of 19 million SCR shares, equivalent to 5.6% of the outstanding shares. Accordingly, Viet Capital Securities became the first independent major shareholder of this real estate enterprise.

Jamona Heights – One of the product ranges of TTC Land 

The transaction is conducted according to the agreed method in three days including June 7th, June 11th and June 12th. With an agreed price at VND 8,000, around 7% higher than the reference price of SCR at VND 7,500. Viet Capital Securities has spent about VND 152 billion for this venture. The number of shares bought by Viet Capital Securities is mainly from small shareholders, not from companies and individuals belonging to Thanh Thanh Cong Group. 

The price of SCR stock of TTC Land has increased rapidly, from VND 7,000 to VND 7,500, equivalent to 7% in a short time and it set up a new price range thanks to the official joining of Viet Capital Securities.

In addition to financial investment by the purchase of shares, Viet Capital also supports TTC Land in strategies, especially in investment banking activities in the capital market through other financial tools such as equity, debt, hybrid instruments.

This can be considered as the first big victory of TTC Land under leadership of the new captain – Mr. Nguyen Dang Thanh in the activities of calling for investment in 2019.

It has been not long time ago that TTC Land surprised everyone when appointing Mr. Nguyen Dang Thanh - a senior young leader in the banking industry to become CEO and Chairman of TTC Land. The reason behind this action is that Mr. Thanh is the best matching with the new development strategy of TTC Land.

Shareholders structure of TTC Land before and after Viet Capital Securities bought 19 million shares

After 15 years of establishment and development, basically, the business operation of TTC Land has been stable, with abundant land fund; accordingly, the important missions in the next phase are simplifing the operatiton, controling costs, taking the initiative in operating as well as finding more capital sources to implement projects.

Regarding of financial and capital resources, TTC Land will have to find funding for new investment projects with larger and selective scale; to promote the channel to mobilize capital from issuing bonds to diversify capital sources and to prepare funding for new projects on time; tighten costs controlling and due debts at banks for projects under implement.

In order to have highest efficiency in reorganizing strategy, TTC Land's Board have been continuing to call for capital from other special strategic shareholders, such as foreign investors, investment funds, prestigious real estate developers and big brand like Viet Capital. Certainly, Viet Capital is the only first companion of TTC Land (besides Thanh Thanh Cong Group), not the only one in 2019.

These major shareholders are expected to participate in the comprehensive restructuring process of TTC Land, to support in reducing the floating stock rate in the market to about 31% compared to 46% before Viet Capital’s official cooperation.

Source: Quynh Nhu – Cafebiz