Thaco announces strategic cooperation with HAGL
Thaco announces strategic cooperation with HAGL
The strategic co-operation between Hoang Anh Gia Lai (HAGL) and Truong Hai Auto Corporation (Thaco) is expected to contribute to the development of the local agricultural sector as well as the two companies.
On August 8, HAGL and Thaco officially organised a ceremony to announce the strategic co-operation between the two companies after the signing ceremony on August 3.
According to the agreement, Thaco and its shareholders spent approximately VND3.8 trillion ($168.1 million) on buying convertible bonds from Hoang Anh Gia Lai Agricultural JSC (HAGL Agrico), VND2.2 trillion ($97.3 million) of which came from Thaco alone.
Accordingly, Thaco will be in charge of restructuring the entire operations of HAGL Agrico with the total investment capital of VND12 trillion ($530.97 million).
Besides, Thaco, through Dai Quang Minh Real Estate Investment JSC, bought a 51 per cent stake in Hoang Anh Gia Lai Myanmar Co., Ltd. and is expected to continue increasing its holdings to 65 per cent with the total investment of VND4 trillion ($176.99 million).
After the deal, Thaco and Dai Quang Minh will be in charge of developing the second phase of HAGL Myanmar with the total investment capital of $320 million, which is expected to be completed in 2020.
The cooperation between Thaco and HAGL will pioneer the application of 4.0 technology in the agricultural sector, while simultaneously rechanneling investment flows into the agricultural sector, expanding the playground for newcomers.
Speaking at the launching ceremony on August 8, Prime Minister Nguyen Xuan Phuc stated that the Vietnamese agricultural sector has yet to deal with its challenges, including bumper crops with low selling price, low capacity, and small scale. Besides, Vietnam’s current position on the global agricultural map has yet to match its potential.
PM Phuc added that the joining of Thaco, TH true MILK, Masan, and Loc Troi will contribute to breaking the prejudice that agricultural investment does not yield high profits because if the investors have methodical development plans and apply technology, they will achieve sweet fruits.
PM Phuc affirmed that the government will accompany the business community, while simultaneously providing favourable conditions for their success.
