REE leader to purchase millions of stocks dropped low by COVID-19
REE leader to purchase millions of stocks dropped low by COVID-19
Amidst the COVID-19 outbreak, the chairwoman of REE shows strong faith in the company's prospects by registering to spend nearly VND450 billion ($19.57 million) to increase her ownership rate.
Nguyen Thi Mai Thanh, chairwoman of REE Corporation
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Nguyen Thi Mai Thanh, chairwoman of REE Corporation’s (HSX: REE) management board, on March 17 registered to buy 15 million REE stocks to raise her ownership rate. The estimated trading timeline is March 18-April 14.
If the transaction succeeds, Thanh’s shareholding will rise to 12.16 per cent or 37.7 million stocks. REE stocks currently fetch VND29,900 ($1.30) per stock, thus, the deal may cost her about VND450 billion ($19.57 million).
Thanh's decision to buy is a result of the COVID-19 pandemic, which drew down the price of the REE ticker by 17 per cent compared to the beginning of this year.
In 2019, REE recorded VND4.89 trillion ($212.6 million) in net sales, down 4 per cent on-year. The after-tax profit reached VND1.638 trillion ($71.2 million), down 8 per cent on-year. REE performed about 88 per cent of its sales target but exceeded its after-tax profit target by 17 per cent.
