Hoàng Quân Group to raise funds for acquisition deal

June 05, 2024 - 07:42
The company intends to use an expected VNĐ1 trillion from a private placement to acquire a majority 51 per cent stake in An Phú Sinh Group.
HQC Bình Trưng Đông, a social housing project developed by Hoàng Quân Group in Thủ Đức City. — Photo nld.com.vn

HÀ NỘI — Hoàng Quân Consulting-Trading-Service Real Estate Corporation said that its Board of Directors has proposed approving a private placement to increase the company's charter capital to raise funds for an acquisition.

The company plans to raise capital through a private placement of 100 million new shares at VNĐ10,000 per share (US$0.39), with the General Meeting of Shareholders authorising the board to select investors and determine the timing.

The real estate firm intends to use the expected VNĐ1 trillion from the issuance to acquire a majority 51 per cent stake in An Phú Sinh Group, the developer of the An Phú Sinh residential project, and to provide additional capital support for the continued implementation of this project.

Hoàng Quân's total investment in An Phú Sinh will not exceed 35 per cent of its total asset value, which stood at around VNĐ7.3 trillion as of December 31 last year.

In early March, the company successfully raised VNĐ1 trillion through a private placement of 100 million shares at VNĐ10,000 per share. The shares are subject to a 1-year transfer restriction.

According to its adjusted capital utilisation plan, the company will use VNĐ400 billion from the raised funds to buy stakes from existing shareholders of Golden City Investment, and VNĐ600 billion to acquire newly issued private placement shares of Golden City.

In 2024, Hoàng Quân aims to achieve VNĐ2 trillion in revenue, 6.2 times higher than 2023, and VNĐ100 billion in profit after tax, 19.2 times higher than 2023. The gains are expected to be driven from projects like Golden City, valued at VNĐ500 billion, the Hàm Kiệm industrial park worth VNĐ400 billion and Golden Grand, which is worth VNĐ300 billion.

It has also set other ambitious targets, aiming to complete at least 50 affordable housing projects with around 50,000 units, as well as renovate or construct at least ten apartment buildings in HCM City, Đồng Nai and Long An Province.

Beyond the affordable housing segment, the company is actively expanding its investments and operations in commercial, industrial and resort real estate.

Notably, Hoàng Quân has recently signed a strategic cooperation agreement with Novaland to jointly develop affordable housing projects in HCM City and southern provinces. Under this partnership, the two companies will combine their financial resources, expertise and available land banks to invest in potential affordable housing developments across locations like Bình Thuận, Đồng Nai, Bình Dương and Long An Province.

Through this collaboration, the two property developers expect to deliver 3,000 affordable housing units in 2024 while also exploring new projects on Novaland's available land.

Previously, Hoàng Quân intended to issue up to 30 million shares through a private placement, equivalent to 5.2 per cent of the total outstanding shares, in order to swap with its creditors. However, the plan was cancelled.

On the stock market, shares of the company closed the week at VNĐ4,230 per share, down nearly 0.5 per cent from the previous session. — VNS