Thien Long (TLG) sets to pay dividend ahead of acquisition by Japanese group

Thien Long (TLG) sets to pay dividend ahead of acquisition by Japanese group

The final registration date for shareholders eligible for these dividends is set for December 12.

Customers shop for Thien Long's products at a stationary store. Photo courtesy of the company

 Thien Long Group Corporation has announced its decision to distribute dividends for the fiscal year 2024 in the form of stock alongside an interim cash dividend for 2025.

The final registration date for shareholders eligible for these dividends is set for December 12.

According to the resolution passed by the Board of Directors, the dividend for 2024 will be paid at a rate of 10:1, meaning shareholders will receive one new share for every ten shares they hold. This issuance is expected to amount to approximately 8.78 million new shares.

The company will also distribute an interim cash dividend for 2025 at a rate of 10 per cent of par value, equating to VNĐ1,000 per share, with payment anticipated on December 26. The total payout for this cash dividend will be around VNĐ87.8 billion (US$3.3 million).

Notably, the largest recipients of these dividends will be the family group of chairman Cố Gia Thọ, who holds nearly 5.76 million shares of Thien Long, representing about 6.56 per cent of total shares.

Additionally, his firm Thien Long An Thinh owns around 41.1 million shares, translating to over 46.8 per cent of the company's equity.

Collectively, the family group controls close to 59 per cent of Thien Long's shares and is expected to receive over 5.15 million newly issued shares and around VNĐ51.5 billion in cash from this dividend distribution.

The source of Thien Long's dividends will come from undistributed profits after tax, which were recorded at about VNĐ858 billion by the end of 2024.

In a separate development, on December 4, Thien Long disclosed that major shareholder Thien Long An Thinh is in negotiations to transfer its entire stake to Japan's Kokuyo Group.

This acquisition is seen as a critical step in Kokuyo's plan to take control of Thien Long. Following this transaction, Kokuyo is expected to make a public purchase offer for up to 18.19 per cent of the remaining shares.

If both transactions are completed, Kokuyo's ownership in Thien Long could rise to approximately 65 per cent, thereby granting the group significant control over the company.

In the third quarter, Thien Long reported revenues of nearly VNĐ1.2 trillion, a 32 per cent increase compared to the same period last year.

However, net profit after tax dropped by 17 per cent, bringing the nine-month revenue total to over VNĐ3.2 trillion, an increase of nearly 11 per cent, while net profit fell by about 11 per cent.

The company has thus far achieved 77 per cent of its revenue target and 84 per cent of its profit goal for 2025.

On the stock market, shares of Thien Long were traded at VNĐ54,100 per share, down 1.64 per cent. 

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