TVS says error in transaction wasn't costly

TVS says error in transaction wasn't costly

Thien Viet Securities Co (TVS) did not incur any financial losses resulting from the purchase of over 6.4 million shares in HCM City Infrastructure and Investment (CII), TVS General Director Tran Quoc Tuan has said.

In a letter sent to its shareholders on Thursday, Tuan said in the first half of this year, TVS successfully consulted a major shareholder of CII to transfer a large amount of CII shares to a foreign investor.

However, on May 10, due to an error in executing a transaction, over 6.4 million CII shares, which should have been transferred to the foreign investor's account, mistakenly arrived in TVS's account.

"In compliance with the regulation on information disclosure, TVS had to disclose becoming a major shareholder in CII. But on Wednesday, TVS transferred these shares to AIT Pte Ltd," Tuan wrote.

The Singapore-based technology company AIT became a foreign shareholder of CII, holding 8.56 per cent its charter capital. AIT registered to buy another 1.1 million CII shares to increase its holdings to 7.53 million.

TVS's leader said besides consulting fees from investors, the company did not incur any financial losses caused by this transaction, except fees charged by regulation.

On May 10, TVS bought over 6.4 million shares of CII at a price of VND44,000 (US$2.1) a share. However after that, CII dropped to the floor price for five consecutive sessions to VND33,000 ($1.57) which raised the rumour that the "mistake" cost TVS a loss of over VND70 billion ($3.3 million).

CII, after a brief rise of 3 per cent on Thursday, closed yesterday down another 4.4 per cent, settling at VND32,500 ($1.55) a share.

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