Hoang Anh Gia Lai Group's project in Yangon, Myanmar. — Photo vietnammoi.vn

Agriculture group Hoang Anh Gia Lai (HAGL) has transferred its 47.93 per cent stake in the property arm Hoang Anh House Construction and Development JSC to Dai Quang Minh Real Estate Investment Corporation.

HAGL sold all 196.37 million shares in the realty unit for an unknown value, the company said in a statement this week.

The associate firm, known as HAGL Land, has charter capital of VND2 trillion (US$86 million). As of June 30, HAGL had total VND2.53 trillion worth of assets in HAGL Land.

HAGL once held 100 per cent ownership in the real estate unit. In the third quarter of 2018, HAGL Land issued 125 million shares for VND13,414.63 ($0.58) per share in a private deal.

The deal helped HAGL cut its stake in the realty arm and recorded VND516 billion worth of profit.

The deal was carried out after HAGL and automobile manufacturer Thaco on August 8, 2018 announced a strategic co-operation agreement.

Under the agreement, Dai Quang Minh Real Estate Investment Corporation – a member of Thaco – will be in charge of developing the second phase of HAGL’s real estate project in Myanmar.

The total capital made in the project is estimated at VND7.4 trillion and the construction is scheduled to complete in 2020.

In addition to HAGL Land, the Vietnamese agricultural group also transferred its stakes in other member firms such as HAGL Agrico.

Selling stakes in member companies is a part of HAGL’s plan to exit non-core businesses and transform to a farming business from a multi-sector group.

In the second quarter of 2019, HAGL recorded VND513 billion of revenue, down 73 per cent yearly, and VND713 billion in losses. Six-month revenue was VND912 billion, down 68 per cent yearly, and the group suffered a loss of VND691 billion.

HAGL shares are listed on the Ho Chi Minh Stock Exchange with code HAG. They gained 1.5 per cent to end Wednesday at VND4,620 per share. — VNS