Right after signing the strategic co-operation contract, Thadi – a subsidiary of Truong Hai Auto Corporation (THACO) – has completed the purchase of 24 per cent of the treasury shares in Hung Vuong Corporation for VND430 billion ($18.7 million), which sets a solid foothold in the agricultural sector.
|Thadi acquires 24 per cent stake in Hung Vuong |
On January 8-10, Thadi – a VND35 trillion ($1.52 billion) charter capital company – bought 53.9 million shares for VND8,000 apiece, equalling a 24.28 per cent stake, to become a large shareholder of Hung Vuong Corporation (HSX:HVG). Before the transaction, Thadi had no HVG shares.
Speaking at the signing ceremony, THACO chairman Tran Ba Duong said that Thadi will hold 35 per cent in Hung Vuong and 65 per cent stake in the joint venture between the two parties, which is established to focus on breeding mother pigs.
“THACO will support Hung Vuong in restructuring its operations and manufacturing system, as well as development strategy, and deal with its financial problems. Thadi will assign senior personnel to hold the positions of vice chairman of the board of directors, financial director, and technical experts in Hung Vuong,” Duong said.
The joint venture will invest VND2 trillion ($86.96 million) in breeding mother pigs in An Giang and Binh Dinh provinces while Thadi will invest in developing pigs farm (1.2 million pigs per year) with the process meeting the Development Food Security Activities (DFSA)standards.
Hung Vuong has published its audited financial statement with the after-tax loss of VND1.07 trillion ($46.52 million), up VND599 billion ($26 million) compared to the statistics from the financial statement built by the company.
Regarding Thadi, the company has implemented a fruit growing project covering an area of 10,000 hectares, 5,000ha of which are used to grow banana and farm systems with the scale of 90,000 cows. Besides, the company is also in charge of selling products for Hoang Anh Gia Lai Agricultural JSC with a fruit area of 26,500ha.
Previously, in August 2019, Hoang Anh Gia Lai (HAG) announced completing the sale of 60 million HNG shares of HAGL Agrico. After the sale, HAG's ownership rate was reduced to 51.04 per cent, equivalent to about 452.7 million shares. The trade took place between July 15 and August 2, 2019.
After the deal, THACO holds a total of 393.02 million Hoang Anh Gia Lai Agrico (HNG) shares, equivalent to nearly 35.5 per cent of the capital. Among of which, THACO chairman Tran Ba Duong bought 50 million HNG shares, increasing his personal ownership from 3.38 to 9.02 per cent, equivalent to 80 million shares. He was estimated to have spent more than VND1 trillion ($43.48 million) on this purchase.