Novaland (NVL) to change board of directors, restructure

No Va Land Investment Group Corporation (Novaland, HOSE: NVL) is consulting shareholders on changing the structure of its board of directors, reducing the number of members from seven to five, and re-electing members.

 

The board has received Jeffrey David Perlman’s resignation letter as an independent member with effect from November 30.

Faced with the global economic instability and the tight monetary policy of the State Bank of Vietnam, the directors and executive board of Novaland have come up with strong solutions.

It includes reducing unnecessary industries and staff, and adjusting its strategies.

At the same time Novaland will invite leading international experts and consultants to help restructure its entire operations to ensure production and business activities are stable.

The group has, along with shareholders, foreign partners, leading experts from EY - Parthenon, and YKVN Law Firm…, been working on assessing the overall situation and planning comprehensive restructuring solutions.

According to the restructuring plan, Bui Thanh Nhon will return as chairman of Novaland.

He said: “I am back as the chairman of the BoD and the legal representative of Novaland because I think that, as entrepreneurs, we have to face difficulties and challenges. As soon as one is over, another one will come.

“I hope that, with our awareness of respecting the law and our expertise, Novaland will continue to shine through our projects in cities and provinces across the nation.

“We can bring joy to millions of customers and contribute to developing Viet Nam”, he said.

Dao Thi Thien Huong, a representative of EY-Parthenon Vietnam, said: “This is a period when both domestic and international markets are facing challenges. These challenges have had a negative effect on the operations and liquidity of many businesses.”

EY-Parthenon Vietnam is a strategy and restructuring consultant under EY Global.

“To the EY-Parthenon team, this is not only a debt restructuring project by an individual enterprise, but also a matter that affects hundreds of thousands of workers' families.

“Among them are thousands of Novaland employees and hundreds of thousands of workers in the ecosystem that cooperates with Novaland in various fields such as construction companies, materials providers, services for cleaning, tree caring, security, and retail... Thousands of shareholders and tens of thousands of customers who are waiting to receive their homes are also affected."

“We recognise Novaland's capacity and potential in creating real products with real value for customers and the community. We believe such businesses deserve to be supported to overcome this challenging period. Our initial analysis of the group's financial situation shows an optimism of the company’s development in the medium and long terms."

With its resources, Novaland has been making a strong effort to deploy sales activities, arrange capital sources, and cut down on investments that are not really necessary to optimise costs.

The company also mobilises all its resources to complete key projects that are in progress such as Aqua City, NovaWorld Phan Thiet and NovaWorld Ho Tram and real estate projects in HCM City centre.

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