Novagroup registered to sell an additional 3 million NVL shares, extending the continuous divestment of this major shareholder group to support debt restructuring.
In a recent information announcement, Novagroup said it will sell 3 million Novaland Group (NVL) shares by order matching or negotiation, from August 27 to September 6. If successful, the ownership ratio will decrease from 17.79% to 17.63%.
The purpose of this major shareholder is to continue selling millions of NVL shares to balance the investment portfolio and support debt restructuring. Based on the closing price on August 22, at VND12,900 per share, they can earn nearly VND39 billion.
Novagroup is related to Mr. Bui Thanh Nhon, when he was Chairman of the Board of Directors of both companies. Recently, the group of shareholders related to Mr. Nhon continuously sold NVL shares.
In July, Novagroup sold shares twice, successfully trading more than 2 million units. At the end of June, this major shareholder also registered to sell 2 million NVL shares but failed due to a change in the trading time, to suit the debt restructuring support plan. Previously, in the same month of June, Novagroup sold nearly 9.2 million units.
Another legal entity in the group of shareholders related to Mr. Bui Thanh Nhon, Diamond Properties, also divested. This enterprise sold nearly 2.1 million NVL shares in mid-July.
Despite the group of shareholders related to Mr. Nhon continuously selling shares, Novaland’s board of directors affirmed that “there was no escape”. At an investor meeting last month, CFO Duong Van Bac said the above moves were to support the restructuring of the company’s debts.
Previously, many bond packages used individual shareholder or Novagroup shares as collateral. This group assigned securities companies to act as a bridge for bondholders to decide the appropriate time to sell shares when the bond lots matured. “Since the crisis, the group of internal shareholders has not sold any shares except to pay debts,” said Mr. Bac.
This year, Novaland targets consolidated revenue of nearly VND32,600 billion and after-tax profit of nearly VND1,080 billion, up 7 times and double respectively compared to the same period in 2023. Revenue is expected to come from Aqua City, NovaWorld Phan Thiet and NovaWorld Ho Tram – projects that have been stuck in legal issues for a long time and are being gradually resolved. In addition, housing projects in Ho Chi Minh City also contribute to NVL’s revenue when they begin handing over “pink books” to customers.
After 6 months, the company completed less than 7% of its revenue target and nearly 32% of its profit plan for the year. In the first quarter, they still lost money due to exchange rate differences, but in the second quarter, they made a profit thanks to financial activities.