Truong Hai Auto Corporation (Thaco) has registered to buy five million shares of Hoang Anh Gia Lai Agricultural JSC (HNG).
Farmers of Hoang Anh Gia Lai Agricultural JSC (HNG) (Source: haagrico.com.vn)
HNG is the business arm of farming group Hoang Anh Gia Lai Joint Stock Company (HAG).
Thaco expects to spend 73 billion VND (3.2 million USD) for the acquisition.
The transactions will be conducted via agreement or order matching method, from December 4 this year to January 2 next year. After the purchase, Thaco will hold 296.4 million HNG shares, 26.7 percent of the firm.
Thaco currently holds 291.4 million HNG shares.
Thaco and HAG signed a cooperation contract in August 2018. Thaco Chairman Tran Ba Duong pledged to pour capital into HNG, help implement the HAG Myanmar project and arrange HNG’s loan structure.
In the first nine months of this year, HNG recorded net revenue of 1.27 trillion VND (54.9 million USD), down 54 percent from the same period last year. It suffered a loss of 1.72 trillion VND after three quarters while the firm targets pre-tax profit of 103 billion VND this year.
On the stock market, HNG shares have been falling from the peak of 19,000 VND per share recorded in mid-July./.VNA