Mobile World heads buy 1.5 million dipping shares

Chairman Nguyen Duc Tai wants to buy 1 million shares between Nov. 14 and Dec. 13 either by order matching or put through.

The purchase, if successful, will increase Tai’s stake in the company from 2.33% to 2.4%.

It is set to cost him VND44.6 billion ($1.79 million) based on Tuesday’s closing price.

The last time Tai transacted MWG shares was one year ago when he sold 1 million shares as the stock traded at around VND135,000, the highest level last year.

CEO Tran Huy Thanh Tung has also registered to buy 500,000 shares to increase his stake from 0.726% to 0.76%.

The purchase is estimated at VND22.3 billion.

MWG has fallen by more than 33% this year and is now at a 15-month low.

News of the leader’s planned purchase seem to have created a positive market impact as the stock closed 4.1% higher Tuesday.

Mobile World posted a revenue of VND102.8 trillion in the first nine months, up 18% year-on-year. Its post-tax profit went up 4% to VND3.48 trillion.

The company plans to stop opening new outlets in the last quarter, except for experimental stores that could fetch immediate revenues, to ensure a strong cash flow amid a challenging economic period.