The State Securities Commission Inspectorate recently decided to impose an administrative penalty on Pham Khanh Phuong, also known as singer Khanh Phuong, on 27/1.

Singer Khanh Phuong in 2023. *Photo: Supplied*

The inspectorate also penalized Nam Nhat Khang Investment Joint Stock Company, a major shareholder of Song Da 1.01 Joint Stock Company (stock code: SJC), for purchasing 881,600 shares in late 3/2023 without public registration. Nam Nhat Khang is an enterprise where Mr. Phuong serves as Chairman of the Board of Directors and legal representative. Following this transaction, the group of shareholders associated with Mr. Phuong increased its ownership in SJC from 26.28% to 39%, granting them sufficient veto power over key decisions made by the general meeting of shareholders.

In addition to a total fine of 300 million VND, the State Securities Commission Inspectorate ordered Nam Nhat Khang to forfeit voting rights on the shares acquired through the violation. Concurrently, the major shareholder of SJC is mandated to sell shares to reduce its stake below the threshold requiring a public tender offer, within a maximum period of six months from the effective date of the penalty decision.

According to the Securities Law, a public tender offer must be made when acquiring shares that result in direct or indirect ownership of 25% or more of a public company's capital. Furthermore, a public tender offer must continue if the acquisition is expected to reach or exceed 35%, 45%, 55%, 65%, or 75% of the capital.

This marks the thu hai time singer Khanh Phuong has been penalized by the State Securities Commission Inspectorate for undeclared stock transactions. In late 6/2023, the inspectorate found that Mr. Phuong purchased over 3.1 million SJC shares between 23/6 and 28/10/2022, increasing his ownership from 0% to 45.5% without making a public tender offer. At that time, he was fined 150 million VND for this offense, plus an additional 95 million VND for multiple other instances of trading shares as a major shareholder without disclosing information.

Song Da 1.01 (SJC) operates in construction and real estate. The company was listed on the Hanoi Stock Exchange in 2007. By mid-2021, its shares were delisted due to late submission of financial reports for three consecutive years (2018-2020). The shares subsequently moved to the UPCoM market and are currently subject to trading restrictions.

Khanh Phuong was born in 1981 in TP HCM. He founded the group MP5. After the group disbanded in 2006, he began his solo career. In the 2000s, he was a popular singer with hit songs such as Chiec khan gio am, Mua thuy tinh, and Lang yeu. Last year, he joined the music group Ngu ho tuong with 4 other singers.

Minh Anh