Hoang Anh Gia Lai sells 99% of hospital shares to pay off debt
Hoang Anh Gia Lai Joint Stock Company has just decided to transfer 9.9 million shares that the unit currently owns at University of Medicine and Pharmacy Hospital - Hoang Anh Gia Lai. This amount of shares corresponds to the ownership ratio of 99% of the charter capital at University of Medicine and Pharmacy Hospital - Hoang Anh Gia Lai Joint Stock Company.
As previously announced, the company will use this money to repay the principal and interest of maturing bonds issued since 2016.
Hoang Anh Gia Lai (HAG) sells 99% of shares in hospital to pay debt (Photo TL)
Currently, Hoang Anh Gia Lai has not announced the transfer price of these shares nor the identity of the investor who bought the shares. Deputy General Director Ho Thi Kim Chi was assigned by the Board of Directors to perform tasks related to the transfer process.
Previously, Hoang Anh Gia Lai also had to sell Hoang Anh Gia Lai Hotel located at No. 1 Phu Dong, Phu Dong Ward, Pleiku City, Gia Lai Province and earned about 180 billion VND. This amount was also used to pay off debt.
Reported profits of hundreds of billions every quarter but still had to sell assets to pay off debt
A rather strange paradox is that in the past 2 years, HAG has continuously reported profits of up to hundreds of billions of VND per quarter. However, the company still has to continuously sell assets to get money to pay off interest debts due. The company's last significant loss was reported in the first quarter of 2021 with a loss after tax of about 68.8 billion VND.
Most recently, the plan to issue 130 million private shares of HAG was also implemented with the purpose of raising capital to pay off debt.
Regarding the third quarter business results, Hoang Anh Gia Lai recorded revenue of VND1,889.4 billion, up 31.1% over the same period. Profit after tax reached VND324.6 billion, up 12.2%. Part of the sudden increase in profit was recorded from the liquidation of fixed assets, contributing VND144.1 billion to the company's third quarter business results.
Entering October 2023, Hoang Anh Gia Lai's revenue also recorded 711 billion VND, an increase of 52.3% over the same period. Of which, the fruit tree segment contributed 57.7%, equivalent to 410 billion VND. The livestock segment contributed 27.8%, equivalent to 198 billion VND. In this October, the company continued not to announce profits as it did in previous monthly reports.
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