Novaland asks shareholders for opinions on debt swap for major shareholders

Information from No Va Real Estate Investment Group Corporation ( Novaland ) said that the company is preparing to submit to shareholders a plan to issue shares to convert debt. Then, it will send the documents to the State Securities Commission to implement the next steps.

According to Novaland, this issuance is to swap debts with some major shareholders - those who have sold collateral to help the company pay off loans and bonds due during the difficult period. The two major shareholders on this list are NovaGroup and Diamond Properties.

According to Novaland, during the most difficult period, major shareholders have committed to accompany and support the company to pay off debts when necessary and maintain continuous operations. According to the signed agreements, in the 3 years 2022 - 2024, shares mortgaged by these shareholders to secure the group's debt obligations have been sold to pay off debts, corresponding to the debt obligations that Novaland recorded for these shareholders in the financial statements.

The two major shareholders NovaGroup and Diamond Properties are both related to Mr. Bui Thanh Nhon.

Previously, at the end of 2021, when Novaland had not yet encountered financial difficulties, a group of shareholders related to Novaland Chairman Bui Thanh Nhon held more than 61.4% of the company's capital. However, since 2022, NVL shares have begun to plummet due to market fluctuations and the financial crisis, leading to many debt settlement actions by this group of shareholders.

To "rescue" Novaland, the group of major shareholders borrowed shares to sell to pay off debt, and proactively reduced their ownership ratio from 60.8% (June 2022) to 38.7% (December 2024).

Most recently, five shareholders related to Mr. Bui Thanh Nhon continued to register to sell nearly 19 million NVL shares to restructure their investment portfolio and support Novaland in debt settlement. If the transaction is successful, this group's ownership ratio at Novaland will decrease to 37.4%.

Novaland said it would soon announce details of the number of shares to be issued and affirmed that it would be transparent throughout the entire process, while ensuring fairness for shareholders. The company acknowledged that the issuance of shares could cause short-term dilution, but pledged to work with major shareholders to complete the recovery plan, ensuring the rights of shareholders and related parties.

As of the morning trading session on May 19, NVL shares increased slightly by VND100, trading at VND12,250/share.

Source: https://nld.com.vn/novaland-xin-y-kien-co-dong-ve-viec-hoan-doi-no-cho-co-dong-lon-19625051911281508.htm