NovaGroup chairman Bui Thanh Nhon on Friday officially became chairman of the Vietnamese conglomerate’s real estate subsidiary Novaland, continuing to drive the developer’s entire restructuring process.
Novaland’s board of directors announced the new chair the same day, saying Nhon, founder of NovaGroup, is also Novaland’s legal representative.
The Ho Chi Minh City-based property developer has also scaled down its number of board members to five from seven, together with board re-election, in line with its restructuring process, which is streamlining its corporate structure, including clearer decentralization to executive positions under the body with clearly assigned responsibilities and duties.
Novaland said in November that veteran businessman Nhon was returning as its chairperson amid woes in the Vietnamese real estate market. Prior to that, he had left the position to Bui Xuan Huy to focus on NovaGroup’s business strategy.
Nhon said at that time: “I return to the role of board chairman and legal representative of Novaland because I have to take on difficulties and challenges as an entrepreneur.”
Novaland, Vietnam’s fourth-biggest listed property developer, announced on November 22 that Citigroup had converted $1 million worth of its five convertible bonds into some 271,000 Novaland shares. The conversion price was VND85,000 ($3.42) each.
Early this June, a consortium led by global investment giant Warburg Pincus completed a $250-million investment in Novaland. The developer said it would use the proceeds to increase its strategic land bank and complete the development of some major projects.
Novaland recorded a consolidated revenue of VND11,152 billion ($475.57 million) last year, down 25% year-on-year, and equal to more than 31% of its 2022 revenue target. Its 2022 consolidated after-tax profits totaled VND2,293 billion (over $97.78 million), down 34% year-on-year.
Novaland is listed on the Ho Chi Minh Stock Exchange as NVL. NVL shares closed the Friday trading session at VND14,950 ($0.64) per unit.