The fourth dollar billionaire of Vietnam, Tran Ba Duong, will become the developer of a huge real estate project in Myanmar instead of Doan Nguyen Duc, chair of Hoang Anh Gia Lai Group, who is now focusing on agricultural production.
The resolution of the Board of Management of Hoang Anh Gia Lai Group (HAG) released recently shows the decision to transfer 196 million shares, which account for 47.9 percent of charter capital of Hoang Anh Housing Development and Construction JSC, or HAGL Land (HAN) to Dai Quang Minh Real Estate.
HAGL Land is a subsidiary of HAGL which is in charge of real estate development. Dai Quang Minh is a subsidiary of Truong Hai Automobile (Thaco).
The H1 2019 finance report showed that the value of the investment made by HAG in HAN was VND2.530 trillion by the end of Q2 2019.
Hoang Anh Gia Lai has completed the transfer of all the remaining shares in the real estate development division as he had planned, even though real estate brought him great success in the past.
Prior to that, when releasing the 2018 annual report, Duc stated he would completely withdraw from the real estate sector this year. This is part of his strategy on selling assets to improve the liquidity of Duc’s company.
In the report, besides real estate, Hoang Anh Gia Lai also announced the plan to gradually narrow the livestock division to focus on labor force in fruit farming.
The shares transferred are the remaining shares of Hoang Anh Gia Lai in Hoang Anh Myanmar complex project, the last real estate project of Hoang Anh Gia Lai.
The decision to give up the project in Yangon, Myanmar was first mentioned one year ago, when Duong of Thaco began pumping capital into Hoang Anh Gia Lai, kicking off the campaign of ‘rescuing’ Hoang Anh Gia Lai. After that, Dai Quang Minh held 51 percent of capital.
With the latest move, the last procedures have been completed and the complex project in Yangon can start the second phase of development.
The first phase of the $440 million Hoang Anh Myanmar project was put into operation in 2015. It includes one shopping mall, two A-class office buildings for lease and one hotel with 429 rooms.
Most recently, at the meeting on the occasion of 1-year anniversary of strategic cooperation between Hoang Anh Gia Lai and Thaco, the two sides agreed that they are going on the right track. To date, Thaco has invested $1billion as initially planned.
Hoang Anh Gia Lai reported revenue of VND410 billion in Q1 2019, just 40 percent of the same period last year.
Source: VNN
