Thaco to buy five million shares of Hoang Anh Gia Lai Agricultural
Truong Hai Auto Corporation (Thaco) has registered to buy five million shares of Hoang Anh Gia Lai Agricultural JSC (HNG).
HNG is the business arm of farming group Hoang Anh Gia Lai Joint Stock Company (HAG).
Thaco expects to spend VND73 billion (US$3.2 million) 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 per cent of the firm.
Thaco currently holds 291.4 million HNG shares.
Thaco and HAG signed a co-operation 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 VND1.27 trillion (US$54.9 million), down 54 per cent from the same period last year. It suffered a loss of VND1.72 trillion after three quarters while the firm targets pre-tax profit of VND103 billion this year.
On the stock market, HNG shares have been falling from the peak of VND19,000 per share recorded in mid-July. It closed Monday at VND14,550 per share.