HAGL sells stake in agriculture subsidiary to repay bank loan

By Minh Son   January 4, 2024 | 09:32 pm PT
HAGL sells stake in agriculture subsidiary to repay bank loan
Workers examine bananas at a farm of HAGL Agrico. Photo courtesy of the company
Agriculture firm Hoang Anh Gia Lai (HAGL) plans to sell 13.3 million shares in its HAGL Agrico subsidiary to pay debts.

The transaction scheduled to be carried out between Jan. 9 and Feb. 7 is expected to fetch VND68 billion ($2.79 million) based on HAL’s current prices.

The money raised will be used to repay lender BIDV. On completion, HAGL will see its ownership in the subsidiary decline from 9.4% to 8.24%.

HAGL Agrico grows bananas on 7,000 hectares and durian on 1,200 ha in Vietnam, Laos and Cambodia. HAL prices have jumped by 54% since the end of October to VND5,160.

HAGL has been selling assets since mid-2023 to repay debts.

In the third quarter of last year it had sold the Hoang Anh Gia Lai Hotel for VND180 billion. In the fourth quarter it announced plans to sell the Hoang Anh Gia Lai Hospital.

This week it said it would sell its entire 34% stake in pork distributor Bapi Hoang Anh Gia Lai. Bapi has been posting losses, and HAGL’s ownership in the firm has fallen from 55% at the time of incorporation.

As of September-end HAGL had VND7.78 trillion in debts. Its chairman Doan Nguyen Duc said the company would strive to become debt-free by 2025.

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