HCMC – Hoang Anh Gia Lai Agricultural JSC (HAGL Agrico) sold four of its subsidiaries to an agriculture business of Truong Hai Auto Corporation (Thaco) one month ahead of HAGL Agrico’s extraordinary general meeting.
Doan Nguyen Duc, board chairman of HAGL Agrico with the stock code of HNG, signed a resolution announcing the sale of three of its member companies to Truong Hai Agriculture JSC (Thagrico). Founded in early 2019, Thagrico is headquartered is in the central province of Quang Nam, and its legal representative is Tran Ba Duong, board chairman of Thaco.
According to the announcement, HNG will transfer 100% of its shares at Hoang Anh Quang Minh Rubber Co., Ltd, Highland Dairy Cattle Co., Ltd and Hoang Anh Dak Lak JSC to Thagrico. The three firms operate in the fields of rubber cultivation, livestock and real estate, respectively.
The decision to sell HNG’s additional subsidiaries to Thagrico was made prior to the former’s extraordinary general meeting, which was held on January 8.
Besides this, by the end of last year, Duc sold 100% of its shares at An Dong Mia JSC to Thagrico. Overall, HAGL had sold four of its subsidiaries to Thagrico in less than one month.
Given such a move, a rumor that Thaco would acquire HAGL Agrico became more credible as Thaco’s board chairman Tran Ba Duong took over the post of board chairman of HAGL Agrico.
In the past, there were major changes among key executives of HNG before the extraordinary general meeting took place. Specifically, the company dismissed two deputy general directors and the chief accountant in early December last year. By the end of the same month, the firm received resignation letters tendered by three board members for the 2020-2025 tenure—Do Xuan Dien, Vo Truong Son and Nguyen Quan Anh—and head of the supervisory board Le Hong Phong.
Aside from personnel issues, HNG said it would seek the approval of shareholders at the meeting for a private placement plan to swap debts with Thaco and supplement its capital.
HNG is set to issue 741 million shares worth VND7.414 trillion. Of this, 550 million shares will be issued for swapping debts and 191 million shares for supplementing its capital.