The Ho Chi Minh Stock Exchange (HoSE) announced it would cancel LDG Investment JSC chairman Nguyen Khanh Hung’s unauthorized sale of over 2.6 million LDG shares on Tuesday.

Hung was found to have initiated the sale without disclosing its details to the southern bourse, as per the prevailing regulations, the HoSE said, explaining its reasoning for scrapping the transaction.

LDG Investment JSC, a major property firm in Ho Chi Minh City, is also the developer of the Tan Thinh residential area project in Dong Nai Province, a neighbor to the southern metropolis.

This project recently sparked public controversy after multiple state officials were prosecuted and detained for their alleged involvement in the illegal construction of 480 villas and townhouses in the residential area.

As for the company’s business performance, it generated almost no revenue and reported a net loss of over VND71 billion (US$2.9 million) in the second quarter of this year, raising its net loss in the first half of the year to more than VND140 billion ($5.8 million). 

Comparatively, its net profit in H1 2022 was VND15 billion ($627,180).

Between 2022 and May this year, Hung was forced to sell some 18.2 million shares of LDG, equivalent to a 7.11 percent stake in the firm, thereby removing his status as a major shareholder.

Closing the session on Wednesday, LDG ended in positive territory, up 0.94 percent against the previous session at VND6,420 ($0.26), with more than 5.7 million shares changing hands.

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