Novaland steps up M&A game

Novaland has made significant M&A transactions throughout the year to prepare for its 2018 targets

Novaland has decided to spend VND1.045 trillion ($45.8 million) acquiring 98.12 per cent of Thanh Nhon Real Estate Investment One Member Co., Ltd. After the purchase, Thanh Nhon Real Estate Investment One Member Co., Ltd will be converted to Thanh Nhon Real Estate Investment Co., Ltd.

A few days ago, Novaland sold a 99.88 per cent stake in its subsidiary Nova Galaxy Real Estate JSC to Vietnamese real estate developer Anpha Holdings. The deal’s value was not disclosed. After the purchase, Anpha Holdings will take over Nova Galaxy’s projects, especially its newest project, the apartment and shopping centre complex located in District 4, Ho Chi Minh City.

Earlier in April, Novaland completed the purchase of a 99.99 per cent stake in Gia Duc Real Estate Co., Ltd. for VND1.939 trillion ($85.01 million).

Novaland said the acquisition is meant to advance its plans to enlarge its land holding, which would help it achieve its targets for the next year.

By acquiring Gia Duc, Novaland will also get a stake in the Sunrise Bay project, a 181-hectare complex of urban area, amusement, and commercial centres in Hai Chau district of Danang. The developer is Sunrise Bay Company Ltd. Gia Duc owns a 19 per cent stake in the complex.

In the same month, Nguyen Nhu Pho, a shareholder of Novaland, sold 19.5 million shares to Credit Suisse AG’s Singapore branch for VND1.4 trillion ($61.37 million).

Officially listed at the Ho Chi Minh City Stock Exchange in December 2016, after more than three months, Novaland’s market capitalisation was nearly $2 billion and is now among the top ten biggest capitalised stocks of the whole market, not to mention being a particularly coveted eye-candy to foreign investors.

The group has been actively diversifying its financial structure for prudent capital management, such as this private placement to increase its chartered capital by 5.6 per cent from nearly VND6 trillion ($26.3 million) to VND6.3 trillion ($27.6 million).

Novaland now has a portfolio of more than 40 projects with different types of products, such as townhouses, office-tels and condotels, trading centres, land houses, and villas.

Aside from six projects completed and delivered as committed, in the first quarter of 2017, Lakeview City in District 2, Lucky Dragon in District 9, and Orchard Garden in Phu Nhuan district have been handed over to residents.

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