REE plans ESOP share issue as longtime chairwoman steps down amid leadership restructuring

Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corp (HoSE: REE) intends to issue 500,000 employee stock ownership plan (ESOP) shares while reshaping its leadership structure, including the departure of longtime chairwoman Nguyen Thi Mai Thanh from the board.

According to documents released ahead of its extraordinary AGM scheduled for July 10, REE plans to issue the ESOP shares at VND10,000 ($0.38) each, equivalent to around one-fifth of the stock’s current market price.

The issuance, representing approximately 0.08% of the company’s outstanding shares, is expected to raise VND5 billion ($189,940). The shares will be subject to a three-year lock-up period, with 30% becoming transferable after one year, another 30% after two years, and the remaining 40% after three years.

The intention forms part of a broader package of resolutions that includes significant changes to the company’s governance structure.

REE is seeking shareholder approval to remove Nguyen Thi Mai Thanh and board member Ashok Ramachandran from the board of sirectors for the 2023-2027 term following their resignations submitted on May 15. The changes are expected to take effect immediately after the shareholders’ meeting.

The departures follow the appointment of Nguyen Ngoc Thai Binh, Mai Thanh’s son, as CEO in May, replacing Ramachandran. Vietnamese corporate governance regulations prohibit a public company’s chairperson and CEO from having a family relationship.

Although Thanh will leave the board and relinquish the chairmanship, she is expected to retain a key role in shaping the company’s long-term strategy. REE board has appointed Thanh as chair of a newly established strategy committee, which will be formally incorporated into the company’s governance framework from July 10.

The committee will provide strategic guidance on long-term development plans, financial management, capital mobilization and mergers and acquisitions, allowing Thanh to continue influencing corporate direction while complying with regulatory requirements.

The governance shakeup comes as REE continues to report solid financial performance. In the first quarter of 2026, the company posted revenue of VND2.47 trillion ($93.87 million), up nearly 20% from a year earlier, while net profit rose 15% to nearly VND939 billion ($3.57 million). For 2026, REE targets revenue of VND12.23 trillion ($464.59 million) and net profit of VND2.81 trillion ($106.9 million).

On the Ho Chi Minh Stock Exchange (HoSE), REE shares closed at VND50,600 ($1.92) each on Tuesday.