Mr. Duc's company wants to sell all its shares in the pork distribution business.

Hoang Anh Gia Lai wants to transfer 2.75 million shares in Bapi - a company specializing in distributing pork products fed on bananas.

The above information was announced by Hoang Anh Gia Lai Joint Stock Company (HAGL) on December 30th. Accordingly, the HAGL Board of Directors has approved the transfer of all shares in Bapi Hoang Anh Gia Lai Joint Stock Company. After the transaction is completed, Bapi will no longer be an affiliated company of Hoang Anh Gia Lai.

Bapi HAGL Joint Stock Company, with its banana-fed pork brand, was established in early 2022 as a collaboration between the company owned by Mr. Duc and Dong A Pharmaceutical Company. Initially, Bapi had a charter capital of 50 billion VND, of which HAGL contributed 55%.

However, since 2023, Bapi is no longer a subsidiary, but only an associate company of HAGL after a share issuance to increase its capital to 100 billion VND. HAGL's ownership stake in Bapi has consequently decreased to 34%.

At HAGL's investor meeting at the end of August, Chairman Duc stated that the pig farming company was not losing money, only Bapi was losing money due to unstable distribution. He had previously argued that Hoang Anh Gia Lai had a unique product line but its distribution was ineffective. Subsequently, the company reviewed and restructured Bapi by purging the leadership team, appointing Mr. Do Xuan Dien as Chairman of the Board of Directors and Mr. Dinh Van Loc as Director. Both are currently the legal representatives of Bapi.

In 2022, Bapi aggressively entered the market with nearly 200 stores and launched an online distribution channel at the end of the year. However, the number of stores decreased to just over 50 by August 2023 due to fierce market competition, and the system was not yet competitive enough.

Recently, Chairman Duc also sold some major assets such as a hotel (180 billion VND) to pay off bond debt, and will soon sell the HAGL hospital.

Anh Tú

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