VNG, one of the four tech unicorns in Vietnam, will offer over 7.1 million treasury shares to BigV Technology Corporation at the price of VND177,881 ($7.5) per share in 2023.
This price is much lower than the VND1.7 million ($71.7) per share that Mirae Asset Finance Company Limited spent to buy in 2021.
Previously, VNG's shareholders had approved the public tender waiver for investors buying treasury shares on December 9.
Accordingly, BigV would be privately offered by VNG all its more than 7.1 million treasury shares, accounting for 24.7% of VNG's shares in circulation.
The offering price is $7.5 per share, which means proceeds of a maximum VND1,264 billion ($53.37 million). This lot of shares will be restricted from being transferred for one year.
In 2019, Singapore’s state-owned investor Temasek spent VND662.4 billion ($27.97 million) buying 355,820 treasury shares of VNG, equivalent to an average transaction value of more than VND1.8 million ($76) per share.
This price was lower than the original price of treasury shares held by VNG. As of June 30, VNG held 9.97 million treasury shares, with a total value of more than VND1,943 billion ($82 million), equivalent to VND194,906 per unit ($8.23), 9% higher than the price offered by VNG to sell treasury shares to BigV. In other words, VNG Corporation would sell at losses to BigV.
Currently, BigV holds 5.7% of VNG's charter capital. After the transfer, the former will increase its ownership to 30.5%, or more than 8.7 million shares.
VNG plans to spend VND764 billion ($32.24 million) of the proceeds on game software licensing costs, and the remaining VND500 billion ($21.1 million) on marketing.
BigV was established in August 2021, with a charter capital of VND101 billion ($4.26 million), much lower than the amount of money spent on buying treasury shares of VNG. The company mainly operates in the field of information technology services and others related to computers. Its legal representative is Ngo Vi Hai Long.
At present, Long holds a 40% stake, Bui Thien Kim 30%, and Tran Ba Khoi Nguyen (30%).
In the first nine months of 2022, VNG's revenue reached more than VND5,760 billion ($243.1 million), flat compared to the same period last year. It reported losses of VND419 billion, compared to the profit of VND529 billion ($22.33 million) in the same period last year.
By September 30, 2022, VNG's total assets reached VND9,189 billion ($387.64 million), a slight decrease compared to the beginning of the year, with liabilities hitting VND3,610 billion ($152.29 million), up nearly 24%.