HCMC – The State Securities Commission has canceled nine bond issues worth more than VND10 trillion of three subsidiaries of Tan Hoang Minh Group as they had concealed information and publicized false information when issuing corporate bonds.
In specifics, Viet Star Real Estate Investment Co., Ltd, Winter Palace JSC and Soleil Investment and Hotel Services JSC had launched nine bond issues between July 2021 and March 2022. These companies are unlisted, the local media reported.
The State Securities Commission’s decision was unprecedented and was made after Tan Hoang Minh Group had successfully mobilized funds from the bond issues.
Under the decision, bond registration and depository organizations must stop transferring the ownership of Tan Hoang Minh bonds in the nine issues. However, the State Securities Commission has yet to announce plans to refund bondholders.
Tan Hoang Minh has recently captured the public attention as its subsidiary, Viet Star Real Estate Investment Co., Ltd, canceled a contract to buy the land lot coded 3-12 in the Thu Thiem New Urban Area in HCMC’s Thu Duc City that it had earlier won in a controversial auction.
Viet Star Real Estate Investment Co., Ltd put the final price for the land lot at VND24.5 trillion while its total asset value was just over VND7.6 trillion and its equity reached some VND800 billion by late 2020. Its highest asset value was over VND17.3 trillion, recorded in 2018, still 30% lower than the price that the company bid for the land lot.
Tan Hoang Minh Group has charter capital of VND10 trillion with 51% being held by Do Anh Dung. As of 2020, the group’s assets totaled over VND20 trillion and its equity reached VND6.9 trillion.