HAG hopes to convert Jia Lai Livestock Company’s debt into capital contribution

Vietnam Stocks – HAG wants to convert Gia Lai Livestock Company’s debt into capital contribution

Hoang Anh Gia Lai Joint Stock Company (HM: L, HOSE: HAG) has just announced the board resolution to register the purchase of shares issued to existing shareholders of Gia Lai Livestock Joint Stock Company and approve the digital conversion transaction. Excerpts of the loan balance, Gia Lai Livestock’s application Convert interest collection and other debt receivable into equity capital.

Accordingly, the board of directors Witch Approval to register the purchase of more than 77.7 million shares for sale to existing shareholders of Gia Lai Livestock Joint Stock Company – a subsidiary of Gia Lai Livestock Joint Stock Company Witch Holds 88.03% of capital.At the same time, the board of directors Witch Also by reviewing data based on financial statements Witch Jia Lai Animal Husbandry Company converted the loan balance, interest receivable and other receivables of Jia Lai Animal Husbandry Company into equity capital. The number of shares converted exceeded 77.7 million. It is expected that after the transaction is completed, Witch It holds 165.75 million shares of Jia Lai Animal Husbandry, accounting for 85% of the share capital.

Ms. He Thi Jinzhi – Deputy General Manager Witch He also serves as the chairman of the board of directors of Jia Lai Animal Husbandry.

Previously, Gia Lai Animal Husbandry Company separated some of its assets, rights and obligations and established a new company – Kon Thup Agriculture Joint Stock Company, located in Changzheng City. Pleiku, Gia Lai. After the split, Witch Owns 88.03% of Kon Thup’s shares (equivalent to the proportion of CNGL), thereby adding one more subsidiary from December 28, 2023.

at investor conference Witch On December 15, Mr Duc confirmed that currently, HAGL is one of the companies focused on repaying the most debt compared to other companies on the market. “HAGL is focusing on dealing with debt and striving to become one of the large listed companies with no debt (including working capital).”, according to Mr. Duke.

About 1-2 years ago, the Chairman announced the sale of all low-profit assets that were not part of HAGL’s agricultural ecosystem to resolve debt issues.

“VOkay, that’s it for the hotel.“, Mr. Tak said, and was determined to complete the Hoang Eng Gia Lai Hospital this year.

* Following hotels, HAG continues to sell 99% of its capital in hospitals to pay down bond debt

HAGL, on the other hand, has many other assets and can improvise with multiple solutions to deal with HAGL’s debt rather than just a straight asset sale option.

If HAGL no longer incurs accumulated losses, retained profits will be issued and used to existing and strategic shareholders. Alternatively, if the subsidiary is in good shape, you can sell the subsidiary’s capital to pay off debt.

For example, livestock companies have many assets, stable cash flow, and good profits; but in the past, the Export-Import Bank (HM:) had debts of up to 2 trillion VND (including principal and interest), “Become a bad debt company”, according to Mr. Duc, it has been processed so far. This makes Livestock a very good company to sell funds, but the stage and time of implementation need to be calculated.

Karuan