Novaland chairman Bui Thanh Nhon not 'running away', says CFO

By Tat Dat April 25, 2024 | 10:50 pm PT

Novaland chairman Bui Thanh Nhon. Photo by courtesy of the company

Novaland chairman Bui Thanh Nhon is "not running away" from the property developer and neither is NovaGroup, its parent and biggest shareholder, its CFO has said.

Responding to a question from a shareholder at the company’s annual general meeting Thursday on whether they doing so since NovaGroup has been selling shares in the company, Duong Van Bac said: "They are not fleeing from the company. Chairman Bui Thanh Nhon has resumed running the company directly as he promised earlier."

Nhon is also chairman of NovaGroup.

NovaGroup this month registered to sell 4.4 million Novaland shares, which would bring its ownership in the company down to 18.14%.

NovaGroup has been offloading NVL shares since the end of last year. Bac said however that this was to help restructure NovaGroup’s debts.

Nhon said that Novaland has been successful in restructuring its debts and he expected the changes to the Land Law to help resolve some administrative issues that Novaland projects are facing.

The company targets revenues of VND32.6 trillion ($1.29 billion) this year, up seven times from last year, and seeks to double post-tax profits to VND1.08 trillion.

It plans a rights issuance worth VND11.7 trillion to existing shareholders.