VinaCapital exits major shareholder status in Vietnamese jeweler PNJ after share sale

According to a report recently submitted by VinaCapital to Vietnam's State Securities Commission, the group of investors related to the firm reduced its direct holdings in PNJ from more than 6.3 million shares, equivalent to 1.24 percent of the jeweler’s charter capital, to some 3.2 million shares, or just over 0.6 percent.

Among the entities involved, Generali Vietnam and the VinaCapital Discovery Equity Fund divested all of their PNJ shares.

The VinaCapital Leading Enterprise Equity Fund was left holding only 61 PNJ shares, while the VinaCapital Strategic Growth Equity Fund retained more than 1.5 million shares.

The divestment lowered the combined ownership of VinaCapital and its affiliated entities to 4.9 percent, equivalent to some 25.5 million shares, causing the group to lose its status as a major shareholder under Vietnamese securities regulations.

The report also detailed the remaining holdings of VinaCapital-related organizations.

Asia Value Investment Limited owns more than 3.1 million PNJ shares, representing 0.6 percent of PNJ's capital.

Vietnam Investment Limited remains the largest affiliated shareholder with nearly 14.9 million shares, or 2.9 percent.

VOF Investment Limited holds more than 2.8 million shares (0.5 percent), while Vietnam Investment Property Limited owns 477,150 shares, equivalent to 0.09 percent.

Other affiliated investors include the VinaCapital Integrated Balanced Fund with 688,650 shares, Chubb Life Vietnam with 124,530 shares, and Hanwha Life Vietnam with 108,330 shares.

In total, the affiliated entities continue to hold some 22.3 million PNJ shares, equivalent to 4.3 percent of the company's charter capital.

PNJ's share price has remained under pressure since police charged the former head of its gem certification subsidiary in a transnational diamond smuggling case in early July.

In a recent research report, Yuanta Securities Vietnam estimated that foreign investors currently hold some US$549 million worth of PNJ shares, accounting for around 1.4 percent of total foreign investment portfolios on the Ho Chi Minh Stock Exchange.

While the brokerage believes the weighting is not large enough to trigger broader market contagion, it noted that further reductions in PNJ holdings by investment funds would not be surprising in the coming days.

PNJ’s ex-subsidiary chief charged in transnational diamond smuggling case

The prices of PNJ shares have been affected since July 3 after authorities identified Dang Ngoc Thao, former director of PNJ’s wholly-owned gemstone certification subsidiary P-Lab, among 22 people charged in an investigation into a transnational diamond smuggling case.

On July 2, police in the north-central Vietnamese province of Thanh Hoa said they had dismantled the transnational diamond smuggling ring that allegedly imported more than 28,000 diamonds into Vietnam in 141 shipments since 2024, generating an estimated VND280 billion ($10.65 million) in revenue.

Authorities seized about 1,100 diamonds during searches of 20 locations and said the investigation was continuing.

Police alleged the network was directed by an Indian national based in Hong Kong, with diamonds sourced in India, consolidated in Hong Kong, and smuggled into Vietnam for distribution nationwide.

Investigators said Thao, 52, colluded with other suspects to purchase smuggled diamonds whose characteristics did not match their original Gemological Institute of America (GIA) certificates.

Police alleged he removed the engraved GIA identification numbers, replaced them with P-Lab identification numbers, and issued new P-Lab grading certificates before the diamonds were sold for profit.

Gem certification is critical to determining a diamond's commercial value and consumer confidence, with independent certification companies not permitted to trade products they certify.

PNJ chairwoman Cao Thi Ngoc Dung told investors on July 6 that 28,000 smuggled diamonds under investigation never entered PNJ’s distribution system.

Dung emphasized that PNJ had no involvement with the 28,000 smuggled diamonds under investigation.

She said PNJ only imports diamonds legally from overseas suppliers, mainly in Thailand and Hong Kong, with full documentation.