HCM CITY — The Board of Directors of Phú Nhuận Jewelry Joint Stock Company (PNJ) on July 8 approved a plan to seek shareholder approval through a written ballot for a treasury share buyback aimed at protecting the company's value and shareholders' interests.

PNJ said the proposed treasury share buyback reflected the board’s confidence in the company’s business fundamentals and its commitment to creating long-term value for shareholders amid current market conditions.

Under current regulations, PNJ must dispose of its existing treasury shares before carrying out a new buyback.

To meet this requirement, the board has approved the sale of its remaining 169,559 treasury shares, saying the move is purely procedural and aimed at paving the way for the proposed buyback.

Once the necessary procedures have been completed and shareholders approve the proposal, the company will proceed with the buyback and disclose relevant information in accordance with regulatory requirements.

PNJ shares had come under pressure after authorities detained and prosecuted Đặng Ngọc Thảo, former director of PNJ Laboratory Co Ltd (P-Lab), a PNJ subsidiary, over alleged diamond smuggling.

At an institutional investor meeting on July 6, Chairwoman Cao Thị Ngọc Dung reiterated that PNJ had no connection with the 28,000 smuggled diamonds involved in the case.

Dung said PNJ imports diamonds only through official channels from overseas suppliers, primarily in Thailand and Hong Kong, with full import documentation.

Separately, PNJ announced that Cao Ngọc Duy, Dung's younger brother, has registered to purchase 300,000 PNJ shares between July 10 and August 7. If the transaction is completed, his ownership stake will increase from 2.64 per cent to about 2.7 per cent of the company's charter capital.

PNJ said its business operations remain stable and its long-term development strategy is progressing as planned. It also reaffirmed its commitment to legal compliance, transparent corporate governance and creating sustainable value for shareholders, customers and other stakeholders. — BIZHUB