Thaco climbs down on not investing in HAGL Agrico
Thaco climbs down on not investing in HAGL Agrico
A Thaco subsidiary has reversed its decision to stop investing in agriculture firm HAGL Agrico after the latter agreed to hand over the land documents over which they fell out.
A HAGL Agrico staff peels back the bark of a rubber tree to harvest the latex. Photo courtesy of HAGL Agrico.
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Lender BIDV has agreed to hand back to HAGL Agrico title deeds for three land lots it has mortgaged. The company had agreed to transfer the deeds to Thagrico, the automaker’s subsidiary, as part of the deal it has made earlier with Thagrico.
When HAGL first failed to hand over the documents, a miffed Thagrico decided to call off its investment in HAGL Agrico earlier this month, saying without the documents it has difficulties mobilizing funds to develop the farms.
Thagrico will buy four HAGL Agrico subsidiaries this year for VND6.5 trillion ($282.5 million), but VND6 trillion will be set off against the latter’s debts to the company.
Thagrico will also lend HAGL Agrico VND600 billion to expand operations.
But it is unclear if it will still issue over 741 million shares to Thagrico for over VND7.4 trillion.
