Yeah1 Group chairman registers to sell over 16% stake to strategic investor

Xuan Thinh Tuesday | 02/11/2020 13:25

Chairman of Vietnamese digital media giant Yeah1 Group - Nguyen Anh Nhuong Tong. Photo: Thanh Nien

Chairman of Vietnamese digital media giant Yeah1 Group - Nguyen Anh Nhuong Tong plans to sell over 5 million shares, or over 16% stake to strategic investor, company said in a statement.

The deal which has scheduled transaction time from February 17 to March 17 is expected to cut Tong’s ownership at the group to 25.52% from current 41.66%.

The digital media giant’s General Director Dao Phuc Tri also registered to sell up to 1 million shares for the same purpose and transfer the right to contribute 100,000 shares to Unicorn Venture JSC. His ownership at the company is expected to reduce to 4.78% from 8.3%.

YEG shares hit the ceiling on Tuesday morning, from $1.58 to $1.72. At this price, Tong and Tri may receive more than $1 million for the deal.

Both have been Yeah1 co-founders since the middle of the previous decade, when Yeah1 was a forum for young people.

After incident with Youtube last year, YEG share price decreased 84% from the price of $10.3, the highest in the market to $1.56.

Last year, the company reported a loss of $15,5 million, partly due to the increasing operating costs.

Selling stakes to strategic partner is among steps Tong is adopting to revive the company.