Mr. Duc's company wants to sell all shares in pork distribution business

Hoang Anh Gia Lai wants to transfer 2.75 million shares in Bapi - a company specializing in distributing banana-fed pork products.

The above information was announced by Hoang Anh Gia Lai Joint Stock Company (HAGL) on December 30. Accordingly, the Board of Directors of HAGL has approved the transfer of all shares at Bapi Hoang Anh Gia Lai Joint Stock Company. After completing the transaction, Bapi will no longer be an affiliated company of Hoang Anh Gia Lai.

Bapi HAGL Joint Stock Company with the banana-eating pork brand was established in early 2022 on the basis of cooperation between Mr. Duc's enterprise and Dong A Pharmaceutical Company. Initially, Bapi had a charter capital of 50 billion VND, of which HAGL contributed 55%.

However, from 2023, Bapi is no longer a subsidiary, only an associate of HAGL after the additional share issuance to increase capital to 100 billion VND. HAGL's ownership ratio at Bapi accordingly decreased to 34%.

At the investor meeting of HAGL at the end of August, Mr. Duc said that the pig farming company did not lose money, only Bapi lost money due to unstable distribution. He once said that Hoang Anh Gia Lai had strange products but the distribution was not effective. After that, the company reviewed and restructured Bapi by purging the board of directors, adding Mr. Do Xuan Dien as Chairman of the Board of Directors, Mr. Dinh Van Loc as Director. Both of them are currently the legal representatives of Bapi.

In 2022, Bapi massively attacked the market with nearly 200 stores and launched an online distribution channel at the end of the year. However, the number of stores by August 2023 decreased to more than 50 due to the fierce market, this system was not competitive enough.

Recently, Mr. Duc also sold some large assets such as hotels (180 billion VND) to pay off bond debt and soon HAGL hospital.

Anh Tu

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