|Hoàng Anh Gia Lai Group's project in Yangon, Myanmar. — Photo vietnammoi.vn
HÀ NỘI — Agriculture group Hoàng Anh Gia Lai (HAGL) has transferred its 47.93 per cent stake in the property arm Hoàng Anh House Construction and Development JSC to Đại Quang Minh Real Estate Investment Corporation.
HAGL sold all 196.37 million shares in the realty unit for an unknown value, the company said in a statement this week.
The associate firm, known as HAGL Land, has charter capital of VNĐ2 trillion (US$86 million). As of June 30, HAGL had total VNĐ2.53 trillion worth of assets in HAGL Land.
HAGL once held 100 per cent ownership in the real estate unit. In the third quarter of 2018, HAGL Land issued 125 million shares for VNĐ13,414.63 ($0.58) per share in a private deal.
The deal helped HAGL cut its stake in the realty arm and recorded VNĐ516 billion worth of profit.
The deal was carried out after HAGL and automobile manufacturer Thaco on August 8, 2018 announced a strategic co-operation agreement.
Under the agreement, Đại Quang Minh Real Estate Investment Corporation – a member of Thaco – will be in charge of developing the second phase of HAGL’s real estate project in Myanmar.
The total capital made in the project is estimated at VNĐ7.4 trillion and the construction is scheduled to complete in 2020.
In addition to HAGL Land, the Vietnamese agricultural group also transferred its stakes in other member firms such as HAGL Agrico.
Selling stakes in member companies is a part of HAGL’s plan to exit non-core businesses and transform to a farming business from a multi-sector group.
In the second quarter of 2019, HAGL recorded VNĐ513 billion of revenue, down 73 per cent yearly, and VNĐ713 billion in losses. Six-month revenue was VNĐ912 billion, down 68 per cent yearly, and the group suffered a loss of VNĐ691 billion.
HAGL shares are listed on the Hồ Chí Minh Stock Exchange with code HAG. They gained 1.5 per cent to end Wednesday at VNĐ4,620 per share. — VNS