Hoang Anh Gia Lai (HAGL) has just registered to sell 80 million shares of HAGL Agrico (HNG), reducing its owner’s equity from 23.28 per cent to 16.06 per cent.
After the sale, HAGL will hold more than 178 million shares in the agricultural company.
The transaction is expected to be executed under the method of agreement from May 7 to June 5, 2021. With the par value, HAGL can obtain a value of VND800 billion after the deal. The company will use the money to restructure debts at Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank).
Previously, HAG reduced its ownership in HNG from 29.78 per cent, or 330 million shares, to 22.57 per cent, or 250 million shares.
In terms of business activities, in the first quarter of 2021, after the agricultural company HNG was no longer a part of HAGL, the company’s net revenue fell sharply 68.1 per cent over the same period last year to VND265.84 billion, resulting in a plunge of 81.4 per cent in gross profit to VND52.4 billion.
After deducting expenses, the company recorded a net loss of more than VND68.7 billion.
As of March 31 2021, HAGL’s total assets also halved to over VND18.4 trillion. Receivables accounted a large proportion of short-term assets with a value of more than VND3.69 trillion. At the moment, the farming company has to make a provision of up to VND2.5 trillion for these assets.
Its long-term assets also halved to nearly VND14.2 trillion. Of which, fixed assets plummeted by 81.2 per cent to VND2.38 trillion, and long-term work in progress also dropped 68.25 per cent to VND3.81 trillion.
HAGL recorded a value of over VND13.67 trillion in debt, of which short-term and long-term liabilities account for VND8.71 trillion, down about VND2 trillion compared to the beginning of the period.
In the next few years, HAGL’s main strategy is to pay off all debts before developing its businesses.
The company shares, traded on the Ho Chi Minh Stock Exchange (HoSE) with ticker symbol HAG, have been on a downward trend since last month.
HAG shares finished Thursday’s trade at VND5,360 per share. The shares hit the session low of VND5,250. — VNS