Dragon Capital sells 6.6 million Mobile World shares

By Dat Nguyen   January 4, 2023 | 08:09 pm PT
Dragon Capital sells 6.6 million Mobile World shares
A Mobile World female employee speaks to customers at a store. Photo courtesy of the company
Investment fund Dragon Capital sold 6.65 million shares of retail giant Mobile World last week, reducing its ownership from 10.12% to 9.67%.

Based on the share price at the time, the deal is estimated to be worth VND283 billion (US$11.91 million).

MWG plunged to VND42,600 on the day of the transaction, its lowest in four weeks.

It had lost more than 36% last year.

In the first 11 months of 2022 Mobile World’s revenues were up 12% year-on-year to VND123.68 trillion but post-tax profits were down 9% to VND4 trillion.

Company chairman Nguyen Duc Tai said in November that profit is set to decline by 10% in 2022 to VND4.4 trillion due to sluggish demand caused by global problems.

The company had spent around VND500 billion closing 400 Bach Hoa Xanh stores in the second and third quarters last year, he said.

But the management assured shareholders that there are no cashflow issues, saying the company recently redeemed VND1.135 trillion worth of bonds issued five years ago and repaid a $120-million loan it had obtained from HSBC two years ago.

Mobile World sells a range of items like home electronics, bicycles and groceries. It has 5,760 stores in Vietnam.

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