HAGL to undergo dramatic restructuring

August 20, 2013 | 15:25

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Multi-sector operator Hoang Anh Gia Lai (HAGL) is set to undergo what its chairman is calling “a drastic surgery” in the hope of cutting off debts and increasing equity by the end of this year.

The company has so far sold six hydropower plants, and will continue to sell more or divest from them, chairman Doan Nguyen Duc told investors at a meeting on Monday.

HAGL will also gradually withdraw from the mineral sector, and sell shares to employees of its wood and stone processing subsidiaries.

As for the realty market, the Hoang Anh Housing Development and Construction company, a member of HAGL, will only maintain several selected projects, the chairman said.

From now to 2015, HAGL will only focus on two main industries: agriculture (growing rubber, sugarcane, and palm oil), and real-estate development, according to the reform plan.

The chairman believes that this restructuring will work.

He asserted that by the end of this year, HAGL’s total loans will drop to some VND12.33 trillion (US$586.14 million), while equity may rise to above VND13 trillion.

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