Board of leaders of Vien Dong pharmaceutical purchases shares, increasing rate of ownership
30/12/2009 - 02:05 PM
Ho Chi Minh City Stock Exchange (HOSE) has allowed Vien Dong Pharmaceutical Joint Stock Company (DVD Securities Code) to implement internal session among shareholders. Mr. Le Van Dung, President of Board of Management discussed with Securities Investment Review on this matter. Performed by Ba Thu
Reporter: It is known that some members of Board of Leaders have decided to purchase 1.450.000 more DVD stocks. Could you please give out more details?
Mr. LE VAN DUNG: December 28th, 2009, Ho Chi Minh City Stock Exchange has allowed Vien Dong Pharmaceutical Joint Stock Company to implement internal session among shareholders. I registered to purchase 1 million more DVD shares from December 30th, 2009. I am holding 3 million shares, and will reach up to 4 million stocks after session, equivalent to 33.59%. Mr. Đao Xuan Huong, member of Board of Management has registered to purchase 450.000 shares, accounting for 3.78% of the Company’s chartered capital.
The total shares that the two members of Board of Management registered to additionally purchase are1.450.000 shares, equivalent to 12.17% of the Company’s chartered capital.
Why do the Company’s leaders decide to purchase stocks to increase rate of ownership at this time?
We understand the operation of DVD more than anyone. In the future, with the advantages of human resources, distribution channels, and the long-term development strategy; self-motivation in research and production of new products; belief of the partners, we are confident to become one of the leading pharmaceutical companies in Vietnam.
Currently, price of DVD stock in transaction is approximately 80.000 VND/stock, equivalent to P/E about 6.7 – 7.3 times. P/E index of DVD is much less than the average index of field and Vietnam’s securities market in general.
According to independent analysis and comment of Tan Viet Securities Company, the reasonable price of investment in DVD stock is 102.000 stocks.
Considering that the price of DVD stock is relatively low and even below the “real value” of DVD both in the presence and the future, we see this is the opportunity for DVD to increase the rate of ownership the Company.
What are the impacts of the additional stock purchase of members of Board of Leaders on the investors, dear Sir?
The transaction of stock purchase of our Board of Leaders once again reaffirms the certain commitment on sustainable and long-term development strategy of the Company. Therefore, for the investors, this is a constructive move to further strengthen belief of the investors in value of DVD’s stock.
Beside the high income of the Company, the investors will gain the dividend level of 2009 up to 25% par value paid in cash by the Company. The Company will conclude the dividend payment list by January 31st, 2010 and pay by January 28th, 2010.
There had cases that in some companies, the Board of Leaders has only disclosed the internal transaction but not actually purchased stocks as registered. What has Vien Dong Pharmaceutical made commitment on stock purchasing registration this time?
The investors will receive the clear answer as the announcement of transaction results. However, at this time, we affirm that the additional DVD stock purchase to increase the rate of ownership is the investment strategy we carefully considered and determined. Time of purchasing registration increasing rate of ownership is from December 30th, 2009 to March 01st, 2010, and we are making every effort to implement earlier than our commitments.
Thank you very much!
Source: Securities Investment Review, December 30th, 2009