Tan Hoang Minh canceled 9 bond issuances with more than VND 10,000 billion

Three member companies of Tan Hoang Minh Group, including Viet Star Real Estate Investment Company Limited, Winter Palace Joint Stock Company and Soleil Hotel Service and Investment Joint Stock Company, have carried out 9 a private bond offering to raise capital with a total value of VND 10,030 billion from July 2021 to March 2022. These businesses are all unlisted companies.

According to the decision of the State Securities Commission, the member companies of Tan Hoang Minh Group have disclosed untruthful information and concealed information when issuing private bonds.

This decision to cancel is unprecedented, after Tan Hoang Minh successfully mobilized and received money from bondholders.

With this decision, bond registration and depository organizations must stop transferring ownership of bonds belonging to Tan Hoang Minh Group in these 9 offering. The Hanoi Stock Exchange (HNX) was assigned to announce the cancellation of bond offerings. However, the Securities and Exchange Commission has not specified how it will handle refunds to bondholders.

The responsibility to disclose information to the issuer is a content in Decree 153 regulating private bond offering and trading. According to Clause 5, Article 34 of this Decree, issuers that fail to comply with regulations will, depending on the nature and seriousness of their violations, be administratively sanctioned or examined for penal liability.

This group’s issuances are primarily for institutions. Particularly, the issuance of VND 1,900 billion of Vietstar and two issuances of VND 950 billion of Soleil Hotel Services and Investment Company have the participation of a credit institution.

Tan Hoang Minh is a corporation that has been recently noticed in relation to the deposit nearly 588.5 billion VND of land lot 3-12 in Thu Thiem New Urban Area.

Viet Star Real Estate Investment Company Limited (Viet Star), a member of Tan Hoang Minh Group, won the price of plots 3-12 in Thu Thiem with the amount of VND 24,500 billion. Despite spending more than 1 billion USD for the Thu Thiem land lot, Viet Star’s total assets will stop at more than 7,600 billion dong by the end of 2020, and its equity will reach more than 800 billion dong. Total assets at the highest point (in 2018) were just over 17,300 billion VND, which is still 30% lower than the amount that this company has issued.

Tan Hoang Minh Group has a charter capital of 10,000 billion VND, owned by Mr. Do Anh Dung nearly 51%. According to separate financial statements, by the end of 2020, the total assets of this group are more than 20,000 billion VND, equity is more than 6,900 billion VND.

Minh Son