Gelex Chairman spent about VND 250 billion to buy 15 million GEX shares
admin 26-06-2020, 23:46

After the transaction, Chairman and CEO Nguyen Van Tuan increased the ownership in Gelex from 0% to 3.2%.

Gelex’s General Meeting of Shareholders allowed Chairman Nguyen Van Tuan and related parties to raise the ownership rate to 36% without a public bid. Photo: Song Ngoc.

According to Ho Chi Minh City Stock Exchange (HOSE), Mr. Nguyen Van Tuan – Chairman of the Board of Directors cum General Director of Vietnam Electrical Equipment Joint Stock Corporation (Gelex – Code: GEX) has purchased 15 million GEX shares as registered.

Trading time is from 27/5 to 24/6 via order matching method and / or agreement. This is Mr. Tuan’s first purchase of Gelex shares. After the transaction, Mr. Tuan owns 15 million shares of GEX, equivalent to 3.2% of the company’s charter capital.

According to the current market price of about VND 17,000 / share, Mr. Nguyen Van Tuan has spent about VND 255 billion to complete the purchase of the above 15 million shares.

Gelex’s General Meeting of Shareholders on June 18 approved the proposal to allow Mr. Nguyen Van Tuan and related persons to increase the ownership rate of GEX shares to 36% of the total voting shares of GEX. Gelex without a public bid.

The transfer of GEX shares among individuals and organizations in the above-mentioned group of persons without changing the total ownership ratio or conducting the public bid procedure as prescribed.

When asked why he did not want to make a tender offer, Chairman Nguyen Van Tuan said that the public tender process was complicated, time consuming and affected his plan to buy shares.

“Therefore, I decided to choose the option not to offer publicly but to buy agreements with partners who are shareholders wishing to sell. That would be much more convenient for me,” Mr. Nguyen Van Tuan said.

“It is expected that in the second half of 2020 after raising capital, I will implement this plan. This is a very good opportunity for me to increase the ownership rate because the Gelex share price is currently quite good for me to buy”, President Gelex added.