Novaland Group Joint Stock Company (Novaland) announced its victory in the lawsuit against SCID regarding the Saigon Co.op An Phu project. Meanwhile, Novaland's stock price unexpectedly surged on March 14th.
Rendering of the Saigon Co.op An Phú project, which the arbitration panel has ruled in favor of Novaland 's lawsuit.
Novaland Group Joint Stock Company (Novaland, stock code NVL) has just announced that it has received the ruling from the Vietnam International Arbitration Center (VIAC) regarding the dispute between the plaintiff, Novaland and Nova An Phu Company Limited, and the defendant, Saigon Co.op Investment and Development Joint Stock Company (SCID).
Accordingly, the arbitration panel ruled in favor of Novaland and Nova An Phu's lawsuit, compelling Saigon Co.op to fulfill all its obligations as a defendant under the project development cooperation contract No. 01/2016, signed on December 30, 2016.
According to the ruling, if Saigon Co.op fails to fully fulfill the aforementioned obligations, Novaland and Nova An Phu have the right to directly carry out the necessary procedures with competent agencies and organizations, so that the state agency can issue a decision to allocate land for the cooperative land area, ensuring the rights and interests of the plaintiffs in the cooperation.
Saigon Co.op Investment and Development Joint Stock Company is a member company of the Ho Chi Minh City Commercial Cooperative Union (Saigon Co.op), established on April 4, 2007, with its main business activities being real estate trading, investment in construction, operation of shopping malls, office buildings, warehouse leasing, etc.
Saigon Co.op Investment and Development Joint Stock Company is the owner of the Saigon Co.op An Phu project. Previously, Novaland, through its subsidiary Nova An Phu, collaborated with Saigon Co.op to develop the Saigon Co.op An Phu project. The project has a total area of 6.9 hectares.
Saigon Co.op An Phu is a mixed-use project comprising a shopping mall, office buildings, a hotel, and luxury apartments. The total investment for the project is nearly US$450 million (approximately VND 11,000 billion), and it was initially planned to be implemented from 2011 to 2016.
According to the 2023 annual general meeting minutes of Saigon Co.op Investment and Development Joint Stock Company, the Co.op An Phu project was initially invested in by Saigon Co.op since 2000. During the investment process, to optimize efficiency, Saigon Co.op transferred the project to SCID as the investor in 2010, and land compensation and clearance were only completed in 2015.
In 2019, SCID was authorized by the Ho Chi Minh City People's Committee to be the investor of the project, and within 3 years it would be allocated land and required to deposit the project security fee at the Ho Chi Minh City Department of Planning and Investment. However, in 2022, due to the prolonged impact of the pandemic and changes in some legal procedures, SCID initiated procedures to extend its investor status for the project.
At that time, the SCID leadership also stated that they were discussing with Novaland about ceasing cooperation on the project, as they were in the process of finalizing the legal aspects as the project's investor.
According to SCID's financial report, the company received a deposit of VND 102.5 billion from Nova An Phu Co., Ltd. related to this project.
On the stock market on March 14th, Novaland (NVL) shares unexpectedly surged to the ceiling price with a sudden spike in trading volume.
With a price increase of nearly 7%, NVL's share price climbed to 11,100 VND/share this afternoon. This is the highest price in almost 4 months.
The volume of shares traded also surged dramatically to over 40 million units, more than three times the average daily volume over the past month. Consequently, Novaland's market capitalization increased to nearly 21,700 billion VND.
Source: https://tuoitre.vn/novaland-thang-kien-tai-du-an-11-000-ti-dong-co-phieu-nvl-tang-tran-20250314152339703.htm
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