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|Trinh Van Quyet, chairman of FLC Group|
The management board of FLC Faros dismissed Quyet from duty as chairman on April 7 after receiving his letter of resignation and notice to step down as a member of the management board.
The official resignation will announced at the next shareholders' meeting. Accordingly, Nguyen Thien Phu, CEO of FLC Faros cum deputy general director of FLC Group, will take over Quyet’s position.
Quyet's departure took place as FLC Faros was approved to merge with another FLC subsidiary, FLC GAB, specialised in mining and asset management.
With the ownership rate of 51 per cent, Quyet is the biggest stakeholder of FLC Faros and is holding a dominant hand in the control and management of the firm. He also owns 8 per cent of FLC GAB’s capital and 9 per cent in FLC’s shares.
FLC Faros was listed in the local securities market in September, 2016 at VND10,000 (43.5 US cents), then skyrocketed to VND178,000 ($7.74) as of the end of 2017. At the same time Quyet also made it among the richest people in the local stock exchange. However, the ticker (ROS), since then, has nosedived to VND4,000 (17.4 US cents), down 98 per cent in value in two years. From its VND90 trillion ($3.9 billion) market cap at launch, only a little more than VND2.2 trillion ($95.65 million) is left.
As ROS has been showing signs of even more of a slowdown in the last three months of 2019, Quyet sold 91 million stocks to reduce his ownership from 67 to 51 per cent.
FLC Faros’ charter capital is about VND5.676 trillion ($246.78 million). Last year, the company reported VND4.84 trillion ($210.43 million) in revenue and VND178 billion ($7.74 million) in net interest.
In February, FTSE ETF has announced that it will not invest in the company. Bao Viet Securities Company (BVSC) forecast FTSE ETF will take FLC Faros off from its investment lists. Moreover, the fund also intends to sell two million ROS stocks.
Indeed, FLC Faros has not shined in recent years. According to the company’s consolidated financial report for the fourth quarter of 2019, FLC Faros only reached about 56 per cent of the year’s after-tax profit target, and receivables made up nearly half of its total assets.