The Board of Directors of No Va Real Estate Investment Group Corporation (Novaland; HoSE: NVL) has just approved a resolution to reduce capital at Tan Kim Yen Real Estate Investment Company Limited (Tan Kim Yen Company). This is a real estate company and a subsidiary of Novaland.

Currently, Novaland owns 2,204.6 billion VND in contributed capital at Tan Kim Yen Company, equivalent to 99.993% of charter capital. After the capital reduction, Novaland's ownership ratio in the subsidiary remains unchanged but the value of contributed capital will decrease sharply, to only 204.8 billion VND.

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Customers learn about the Novaworld Phan Thiet project. Photo: Anh Phuong

According to Novaland, the reason Tan Kim Yen Company reduced its capital is to return a portion of its capital contributions to members in proportion to the company's charter capital. With almost all of its capital contributions owned by Tan Kim Yen Company, Novaland expects to earn VND2,000 billion from this capital reduction.

A few days ago, Novaland also passed a resolution to reduce capital at another subsidiary, Novaland Dat Tam Real Estate Investment Company Limited (NVL Dat Tam Company). The legal representative and general director of this enterprise is Mr. Pham Gia Chi Bao, aka former actor Chi Bao.

From 51 billion VND, after reducing capital, Novaland's capital contribution value at NVL Dat Tam Company is only 51 million VND. However, Novaland's ownership ratio in this subsidiary remains at 51% of charter capital.

In a related development, Novaland's Board of Directors has just agreed to adjust the conversion price and conversion rate for the 300 million USD international bond lot.

Specifically, from January 5, bondholders can convert bonds to NVL shares at a price of VND36,000/share, equivalent to a conversion rate of 149,038 shares for one bond.

On the stock market, at the close of trading on January 2, NVL shares were at VND10,400/share. Thus, the conversion price to shares offered by Novaland is 3.5 times higher than the market price.

The reason why Novaland's subsidiary, with former actor Chi Bao as CEO, had to reduce its capital

The reason why Novaland's subsidiary, with former actor Chi Bao as CEO, had to reduce its capital

In addition to his role as an actor, Chi Bao is also known as the representative of a series of real estate and tourism companies. Recently, a company of the former actor related to Novaland has just reduced its capital from 100 billion VND to 100 million VND.
Novaland plans to buy back 21 bonds with a total value of 7,000 billion VND before maturity

Novaland plans to buy back 21 bonds with a total value of 7,000 billion VND before maturity

There are 21 bond lots issued in the period from June to August 2020 that are expected to be bought back by Novaland before maturity by agreement with the owners.
Police requested to provide Aqua City project documents, what did Novaland say?

Police requested to provide Aqua City project documents, what did Novaland say?

In addition to explaining the reason why Ho Chi Minh City Police requested Dong Nai Province authorities to provide Aqua City project documents, Novaland representatives also said they are actively cooperating with the investigation agency.