Tan Lien Phat Investment and Construction JSC, a subsidiary of Vingroup, has announced the suspension of a loan swap worth VND1.2 trillion (US$53.7 million) with Truong Thanh Furniture (TTF). According to Tan Lien Phat, the decision was made after finding serious discrepancies in data provided by TTF.
On April 15, TTF approved the issuance of 69.7 million shares as the swap for its borrowings in Tan Lien Phat, worth over VND1.2 trillion.
The first loan, worth VND603.5 billion, was set to be converted into shares at a conversion price of VND14,200 each, while the second loan, worth VND598.5 billion, was converted into shares at the price of VND22,000 each.
The swap was expected to be made in the second quarter of this year. However, after the recent verification and evaluation activities of the furniture firm, Vingroup's subsidiary found the discrepancies and canceled the loan.
In May 2016, Tan Lien Phat reportedly paid more than VND1.8 trillion to buy back 72.16 million shares or 49.9 per cent of the stake in TTF.
Tan Lien Phat is the investor in Vingroup's Vinhomes Central Park and the chain of supermarket and convenient stores of Vinmart and Vinmart+.
TTF is the main provider of wooden items and furniture for large construction projects by of Vingroup such as Vinhomes, Vincom, Vinpearl, and VinDS, in addition to Vinmec.
Based in HCM City, with a charter capital of VND1.4 trillion, TTF is active in the timber and furniture industry and manages 14,000 hectares of harvesting forest in the south of Viet Nam.
After the information released on July 19, TTF stock lost nearly seven per cent to end at VND40,600 on the HCM Stock Exchange on the same day.