Where did 800 billion VND go?

As we have reflected in the previous article about 800 billion VND of bonds issued by a member of Tan Hoang Minh, Viet Star Real Estate Investment Company Limited (referred to as Viet Star Company for short). Released July 2021. (Readers review here)

To summarize, Tan Hoang Minh used 1 company in the group, Tan Hoang Minh Hotel Trading Service Co., Ltd to buy back these 800 billion worth of bonds, then created bond products. derivatives for resale to individual and institutional investors.

The first round of fundraising has been completed. Next, let’s find out what Vietnam Star uses the mobilized 800 billion dong for?

At the time of issuance, in July 2021, Viet Star said that it plans to use the proceeds to buy 3.06 million shares of Viet Tien Investment Development and Trading JSC (Viet Tien company) equivalent to 51% shares, which means valuation of the Company up to 1,568.6 billion VND.

Viet Tien Company is known as the investor of the project of construction of works, public, commercial services and houses in the land lot with symbol C4.HH-1; C4.CCKO (CCKO-Lot A) belongs to Viet Hung New Urban Area, Long Bien District, City. Hanoi.

It is worth mentioning that Viet Tien Company is said to have belonged to Mr. Do Anh Dung since the end of July 2018 when Mr. Dung officially became the Chairman of the Board of Directors and the legal representative of the company.

During this time, the company’s charter capital increased from 99 billion to 600 billion dong. According to information from Investor Magazine, Viet Tien’s capital structure includes Mr. Do Anh Dung, who holds 38.9% of the shares, equivalent to 233.4 billion VND and his two sons, Mr. Do Hoang Minh, who accounts for 60.6%. shares equivalent to 363.6 billion dong; Mr. Do Hoang Viet holds 0.5% of the shares, equivalent to 2.9 billion VND.

However, on July 1, 2021, Viet Tien Company changed its business registration and transferred its legal representative to Mr. Dinh Van Hiep, but the head office is still located at 24 Quang Trung, Hoan Kiem, Hanoi. “headquarters” of Tan Hoang Minh Group.

Tan Hoang Minh bought the bonds of Vietnamese Star himself and then sold them again: Where did the 800 billion dong collected go?  - Photo 2.

According to our research, after completing the acquisition of 51% shares of Viet Tien Company, by December 2021, all these shares were mortgaged by Viet Star at Saigon Hanoi Commercial Joint Stock Bank (SHB). , specifically: Viet Star Real Estate Investment Co., Ltd. mortgaged 3,060,000 common shares, ownership rate: 51%.

In addition, Mr. Dung’s two sons, Do Hoang Minh and Do Hoang Viet, also mortgaged all of the shares held by Viet Tien to secure the obligations of Viet Star Company at SHB.

Tan Hoang Minh bought the bonds of Vietnamese Star himself and then sold them again: Where did the 800 billion dong collected go?  - Photo 3.

Source of information: Compiled from Investor Magazine in July 2021 and registered transaction information in April 2022

Regarding this incident, the Business Appraisal Director of a commercial bank in Hanoi raised questions when talking to us “Is there a good story about Tan Hoang Minh using financial leverage at two ends? Using capital mobilized from outside investors to buy assets, then mortgage those assets at the Bank…”

In addition, when Vietnamese Star mortgaged Viet Tien’s shares in SHB, it is not clear how much this asset is valued, but it should be noted that at the “supposedly” price of Vietnamese Star. “acquired” Viet Tien, the value of these mortgage shares is being valued at 2.6 times higher (from VND 600 billion to VND 1,569 billion).

The answer is probably only really clear when there are official conclusions of the authorities. di-ve-dau-20220405012016481.chn

An Vu

Following Economic Life

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