Novagroup continuously sells shares to pay debt

After selling more than 20 million NVL shares, parent company Novagroup continued to register to sell more than 2.2 million units to support debt restructuring.

According to recently announced information, Novagroup Joint Stock Company registered to sell more than 2.2 million NVL shares of its subsidiary Novaland from December 28 to January 10 next year. The purpose is to balance the investment portfolio and support debt restructuring.

It is estimated that based on the closing price of NVL on December 26, Novagroup can earn more than 37.3 billion VND if it sells all registered shares. Accordingly, the ownership ratio will decrease to 19.49%. Novagroup is still the largest shareholder and has a relationship with the family of Mr. Bui Thanh Nhon - Chairman of Novaland.

For the same reason, Diamond Properties - another shareholder related to Mr. Nhon, also registered to sell nearly 4.8 million NVL shares from December 19 to January 9 next year. If the deal is successful, this company could earn about VND80 billion.

Previously, from mid-November to mid-December, Novagroup also sold nearly 20.3 million NVL shares. The average market price during this period was about VND17,309. Thus, the transaction is estimated to bring in nearly VND350.9 billion for Novagroup to balance its investment portfolio and support debt restructuring.

Thus, since November, two legal entities related to Mr. Bui Thanh Nhon have completed and are expected to continue selling a total of more than 27 million NVL shares. It is estimated that both businesses will earn about 468 billion VND.

In addition to actively dumping stocks, Novagroup has been continuously sold off by securities companies. In total, in the past two months, this company has had to sell off more than 3 million shares 6 times. Diamond Properties has also had to sell off about 76,700 NVL shares twice.

Tens of millions of shares were sold at a time when NVL's market price was recovering. After falling to around VND13,000-14,000 per share in October, Novaland's stock code began to recover from the beginning of November. Over the past two months, the code has accumulated an additional 31%, reaching VND18,700 per share in one session. However, in the past two weeks, NVL has tended to move sideways around VND17,000.

Recently, the Novagroup ecosystem has focused on debt restructuring. As for Novaland, in a meeting with the Prime Minister in mid-November, CFO Duong Van Bac said that the group had passed the most difficult time and had completed 80% of the restructuring process. Recently, a batch of international bonds worth 300 million USD was also successfully restructured when the majority of bondholders agreed to delay interest payments and convert them into NVL shares at an initial price of 40,000 VND.

Siddhartha

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