Vietnam HAGL Agrico to raise US$60 million from share sale

Vietnam HAGL Agrico to raise US$60 million from share sale

The said share amount will be offered in private placement and will not be transferable in one year.

HAGL Agricultural Company (HAGL Agrico), a subsidiary of Vietnam's conglomerate Hoang Anh Gia Lai Group (HAGL), plans to raise VND1.4 trillion (US$60 million) from the sale of 87.4 million shares worth VND16,000 (US$0.69) apiece, announced the firm.

The said share amount will not be transferable in one year.

The agricultural firm targets investors capable of supporting the company in applying technologies to cultivation, aiming to enhance productivity and efficiency in business performance.

Additionally, investors should have sufficient capabilities to support HAGL Agrico in the restructuring process, stated the firm.

Under the annoucement, HAGL Agrico also proposed the dismissal of two board members and one in the Board of Supervisors, which will be replaced by three members from Truong Hai Auto Corporation (THACO) - one of the leading car manufacturers in Vietnam. THACO previously announced its decision to invest nearly US$1 billion in HAGL.

"The partnership between HAGL and THACO will create a new ecosystem for Vietnamese enterprises under the platform of applying technologies into corporate governance and production," said Tran Ba Duong, chairman of THACO, at the announcement on August 8.

Under the agreement signed on August 3, THACO is set to invest in two subsidiaries of HAGL, including HAGL Agrico and property subsidiary HAGL Myanmar Center in Myanmar.

For HAGL Agrico, THACO is expected to spend VND3.8 trillion (US$163.5 million) buying convertible bonds in return for a 35% stake in the company.

The car manufacturer will be responsible for restructuring HAGL Agrico with an additional investment capital of VND12 trillion (US$516.3 million).

Prime Minister Nguyen Xuan Phuc considered the partnership between THACO and HAGL as "a match made in heaven", as both are Vietnam's leading companies in industrial and agricultural sectors, repsectively.

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