Vietnam’s State Securities Commission has suspended Hoang Anh Gia Lai JSC (HAGL) from securities trading for five months as the company did not report planned share sales for its agri-business unit HAGL Agrico.
The suspension started on May 17, 2022. The regulator also fined the corporation VND3 billion (over $129,000) for the infringement.
Tay Nguyen Agricultural Service Company, which has relations with HAGL, had earlier issued bonds. At the time, HAGL used the HNG-coded shares of HAGL Agrico, where Doan Nguyen Duc is vice board chairman, as collateral at a bank for the bond issuance.
Then HAGL Agrico had overdue debts, so the bank sold off 20 million HNG shares on January 7, 2022 and another 5.4 million HNG shares three days later for debt collection. However, HAGL did not report on this expected trading.
In another development, Duc had recently registered to sell off 3 million HNG shares from May 4 to June 2. If the transaction could be completed, he would no longer hold any HNG shares.
The stock market regulator on Monday fined Hoa Phat Group VND125 million ($5,411) for failing to ensure an enough number of independent board members.
Hoang Anh Gia Lai and Hoa Phat (HPG), both listed on the Ho Chi Minh City Stock Exchange, are Vietnam's leading private conglomerates.