HAGL Agrico plans to reduce debts with share swap
Hoang Anh Gia Lai Agriculture International JSC (HNG) will issue 55 million shares worth VND660 billion (US$29 million), the firm announced on May 25.
Cows at a HAG farm. — Photo tingialai.com
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The sale aims to swap the debt owed to its parent company Hoang Anh Gia Lai JSC (HAG).
The shares will be sold at a price of VND12,000 per share, higher than the current market price of VND11,300 per share on Thursday.
The convertible debt accounted for only a small part of the total debt of VND9.6 trillion that HNG owed to HAG as of December 31, 2016.
Following the issuance, the chartered capital of HAGL Agrico will increase to VND8.2 trillion. HAG’s rate of ownership in HNG will increase from 67.8 per cent to approximately 70 per cent, equivalent to 575.5 million shares.
In the first quarter of 2017, HNG recorded net sales of VND470 billion, equaling to just 37 per cent of the same period last year. This fall was due to the decrease in the sale of cattles, which dropped from VND892.4 billion to VND196.2 billion, plus HNG no longer recorded the revenue from the sales of sugar and corn products.
Post-tax profit of HNG in Q1 of 2017 reached VND2.7 billion, down 92 per cent year-on-year. However, this profit helped HNG end the previous three consecutive quarterly losses. — VNS
