Novaland wants to issue shares to swap debt for Mr. Bui Thanh Nhon's group

Novaland seeks shareholders' opinions on debt swap for major shareholders. In photo: Novaland's Aqua City project in Dong Nai - Photo: NGOC HIEN

On May 19, Novaland (stock code NVL) said that the group will submit to the general meeting of shareholders for approval in the near future on issuing shares to convert debt according to the compensation request of shareholders, including two major shareholders NovaGroup and Diamond Properties.

NovaGroup is a business in which Mr. Bui Thanh Nhon, Chairman of the Board of Directors of Novaland, is the largest shareholder with 70% ownership and Diamond Properties, chaired by Ms. Cao Thi Ngoc Suong, Mr. Nhon's wife.

According to Novaland, the issuance of shares to swap debt for some shareholders has sold collateral to pay off Novaland's debts in loans and bonds, including two major shareholders, NovaGroup and Diamond Properties.

"During Novaland's most difficult period, major shareholders have committed to accompanying and supporting the group to help pay off due debts when necessary and maintain continuous operations," Novaland informed.

According to the signed agreement, in the three years 2022-2024, the shares mortgaged by these shareholders to secure the group's debt obligations were sold to pay off the debt, corresponding to the fact that Novaland recorded the debt obligations to these shareholders in the financial statements.

At the end of 2021, when Novaland had not yet encountered financial difficulties, a group of shareholders related to Mr. Bui Thanh Nhon - Chairman of the Board of Directors took control of the enterprise by owning more than 61.4% of the capital. In early 2022, Novaland's stock price began to decrease, not long after that, with a series of unfavorable market developments, Novaland began to fall into a period of crisis, NVL shares plummeted.

During this period, to "save" Novaland, the group of shareholders related to Mr. Bui Thanh Nhon lent the company shares to sell to pay off debts, and proactively sold a large amount of NVL shares to support the group's debt restructuring, leading to a continuous decrease in ownership ratio, from 60.8% in June 2022 to 38.7% in December 2024.

"The development and submission of the plan for additional share issuance at the current stage is based on the compensation needs of major shareholders. Novaland's Board of Directors also affirms that it will always be transparent and ensure fairness for all investors.

The temporary issuance of additional shares will dilute current shareholders, however, Novaland and major shareholders are committed to achieving the proposed business plan and recovery goals... to ensure the interests of shareholders and all related parties," Novaland informed.

On the stock market this afternoon, NVL shares closed at 12,050 VND/share.

Recently, 5 shareholders related to Mr. Bui Thanh Nhon have also registered to sell nearly 19 million NVL shares to balance their investment portfolio, support debt restructuring and personal reasons. The transaction is expected to be carried out by order matching and negotiation from May 16 to June 13, 2025. If successful, the total ownership ratio of Novaland's major shareholders will decrease to 37.4%.

NGOC HIEN

Source: https://tuoitre.vn/novaland-muon-phat-hanh-co-phieu-de-hoan-doi-no-cho-nhom-cua-ong-bui-thanh-nhon-2025051922151818.htm