Chaleun Sekong Group has paid VND2.25 trillion ($97.83 million) of the VND2.53 trillion ($110 million) on fully buying up Hoang Anh Gia Lai Hydro Power JSC which was a subsidiary of Hoang Anh Gia Lai Group (HAGL), despite news that the company operates without profit.
|A hydropower plant of Chaleun Sekong Group in Laos |
HAGL has released information to put 248 million shares in Hoang Anh Gia Lai Hydro Power JSC, equaling 99.4 per cent stake, on sale. This movement shows the withdrawal from ineffective business and investment sectors in order to focus on the agricultural sector.
Previously, in its financial statement for the second quarter of this year, HAGL reported that Chaleun Sekong Group from Laos signed a contract to buy Nam Kong 2 and Nam Kong 3 hydropower plants owned by Hoang Anh Gia Lai Hydro Power for VND2.53 trillion ($110 million). So far, Chaleun Sekong completed the payment of VND2.25 trillion ($97.83 million).
It is not the first time that HAGL divested a hydropower project. In mid-2016, the group sold six hydropower plants to Bitexco Group for VND2.1 trillion ($91.3 million). The move to withdraw from the two above plants marks the end of HAGL's journey in the hydropower sector.
Besides, in order to mobilise investment capital for its agricultural projects, HAGL divested from numerous sectors, including real estate, sugar cane production, and livestock. For example, in August this year, Hoang Anh Gia Lai Agricultural JSC (HAGL Agrico – HNG) announced the resolution of its Board of Directors to transfer its entire 99.875 per cent in Dong Penh Co., Ltd. to THADI Agriculture Farming Processing & Distribution JSC.
Besides, in October, the fourth dollar billionaire of Vietnam, Tran Ba Duong, became the developer of a huge real estate project in Myanmar instead of Doan Nguyen Duc, chairman of HAGL.
The resolution of the Board of Management of HAGL shows the decision to transfer 196 million shares, which account for 47.9 per cent of the charter capital of Hoang Anh Housing Development and Construction JSC (HAGL Land – HAN) to Dai Quang Minh Real Estate.
HAGL Land is a subsidiary of HAGL, in charge of real estate development. Dai Quang Minh is a subsidiary of Truong Hai Automobile (Thaco).