NovaGroup has registered to sell 136.4 million shares in Novaland (NVL), a leading property developer in Vietnam, to balance its investment portfolio and support its debt structure and other obligations.
The transaction is expected to be executed through order matching and/or agreement methods from June 16 to July 14.
NovaGroup is currently the largest shareholder in Novaland. If the transaction is successful, NovaGroup's ownership in Novaland will fall to 20.68% of the firm's charter capital, equivalent to 403.3 million shares.
In addition to being a major shareholder, NovaGroup also has ties with the chairman of Novaland, Bui Thanh Nhon, who currently holds nearly 96.8 million shares in NVL, equal to a 4.96% stake.
Previously, NovaGroup announced that it had sold 14.4 million shares in NVL from May 10 to June 8, out of a total of the 69.6 million registered.
In addition, Diamond Properties JSC, another major shareholder, sold more than 4.54 million shares in NVL from May 9 to June 1, and reduced its ownership to more than 197 million shares, or 10.1%.
In 2023, Novaland has targeted revenue of VND9.53 trillion ($405.78 million), and post-tax profit of VND214 billion ($9.11 million), down 14.5% and 90% year-on-year, respectively.
The figures will be officially released at the company's annual general meeting of shareholders (AGM) on June 22.
Novaland posted a loss of VND410 billion ($17.46 million) in Q1, the first loss since the company began releasing its financial indices in 2016. In the same period last year, it made a profit of more than VND1.05 trillion ($44.5 million).
The Ho Chi Minh City-based firm’s net revenue fell to VND604 billion ($25.7 million), down 69% year-on-year, its lowest revenue since Q4/2016.
The company, listed on the Ho Chi Minh Stock Exchange, finished at VND15,200 ($0.65) on Wednesday.