TTC Land (SBT) Plans Share Issuance to Acquire 99.6% of Thanh Thanh Nam

Overview

TTC Land (SBT), the real estate arm of Thanh Thanh Cong Group, announced plans to issue nearly 186 million shares to acquire a 99.6% stake in Thanh Thanh Nam, a company specializing in office and commercial space leasing. The acquisition aims to increase TTC Land’s total leasable area by 42,000 sqm to 208,000 sqm, providing a stable cash flow stream to buffer against market volatility.

Key Facts

• TTC Land (SBT) will issue nearly 186 million shares to acquire a 99.6% stake in Thanh Thanh Nam.
• Thanh Thanh Nam has charter capital of nearly VND 850 billion and total assets of approximately VND 1,300 billion as of end-2023.
• The acquisition will increase TTC Land’s total leasable area by 42,000 sqm to 208,000 sqm.
• Thanh Thanh Nam also operates rest stops, with the first stop opened on the Phan Thiet-Vinh Hao expressway and plans for 9 more stops (18 points) this year.
• TTC Land reported 2023 revenue of over VND 1,227 billion (up 50% YoY) and pre-tax profit of VND 97 billion (up nearly 100% YoY).
• The company targets 2024 revenue of VND 1,275 billion and pre-tax profit of VND 100 billion, excluding contributions from projects undergoing legal clearance.

What Happened

At its annual general meeting on April 23, TTC Land’s Board of Directors approved a plan to issue nearly 186 million shares to acquire a 99.6% stake in Thanh Thanh Nam, a company within the Thanh Thanh Cong ecosystem founded by Mr. Dang Van Thanh and Ms. Huynh Bich Ngoc. After the transaction, Thanh Thanh Nam will become a direct subsidiary of TTC Land.

Chairman Nguyen Thanh Chuong explained that the real estate leasing business offers stable cash flow over the next 5-10 years, making the company “immune” to abnormal market fluctuations. He described the strategy as: “Leasing real estate ensures we don’t worry about daily meals, while commercial housing builds long-term wealth.” The company emphasized that the share issuance will not dilute value in the long term, as the acquisition enhances asset quality and cash flow stability.

Market Context

TTC Land (SBT) is listed on HOSE. The company’s 2023 revenue hit a five-year high, but its 2024 targets show cautious growth, reflecting ongoing legal hurdles for key projects. The real estate sector in Vietnam has faced headwinds from regulatory tightening and slow project approvals, making stable income streams like leasing increasingly attractive. The acquisition aligns with a broader industry trend toward recurring revenue models.

Strategic Significance

The acquisition marks a strategic shift for TTC Land toward a more balanced portfolio between development and income-generating assets. By adding 42,000 sqm of leasable space, the company secures a predictable cash flow that can support its residential development pipeline. The inclusion of rest stop operations diversifies revenue sources further. This move reduces reliance on volatile property sales and positions TTC Land to weather market cycles more effectively.

What to Watch

• Completion timeline for the share issuance and regulatory approvals.
• Integration of Thanh Thanh Nam’s operations and financials into TTC Land’s consolidated statements.
• Progress on legal clearance for TTC Land’s 2-3 key projects expected in 2024.
• Performance of the newly opened rest stops and expansion plans.
• Impact on SBT’s share price and foreign ownership limits post-issuance.