Businessmen play big, lose big
President of Hoang Anh Gia Lai Group Doan Nguyen Duc decided to spend VND240 billion to buy back HAGL bonds, while the owner of Yeah 1 lost VND2.2 trillion in 2019.
1/ Hoang Anh Gia Lai Agrico (HNG) has announced the results of the buy back of bonds before maturity from the National Citizen Bank (NCB). The total amount of money Duc spent on the deal was VND240 billion, and the transaction completion date was January 31, 2019.
Doan Nguyen Duc, president of Hoang Anh Gia Lai
The bonds purchased by HAGL are not convertible, not accompanied by warrants, and guaranteed by HAG shares of Hoang Anh Gia Lai Joint Stock Company.
The 2019 semi-annual financial report showed that HAGL Agrico had a single common bond debt worth VND270 billion. The institution arranging the bond issuance campaign was Euro Capital Securities (ECS), while the bondholder was NCB.
|President of Hoang Anh Gia Lai Group Doan Nguyen Duc decided to spend VND240 billion to buy back HAGL bonds, while the owner of Yeah 1 lost VND2.2 trillion in 2019.|
The collateral is nearly 26.6 million HNG shares that Hoang Anh Gia Lai Joint Stock Company holds. Hoang Anh Gia Lai and HAGL Agrico are led by Mr. Doan Nguyen Duc (elected Duc) as chairman of the Board of Directors.
The collateral for the bonds was 26.6 million HNG shares held by Hoang Anh Gia Lai.
Duc is the president of both Hoang Anh Gia Lai and Hoang Anh Gia Lai Agrico, a subsidiary.
2/ The businessman who lost the most money in the stock market in 2019 was Nguyen Anh Nhuong Tong, president of Yeah 1.
82 percent of Tong’s stock assets vanished and his asset value dropped from VND2.663 trillion to VND478 billion.
Entering the bourse in June 2018 with the price at sky high level, YEG share of Yeah 1 saw the price tumbling from VND319,000 to VND37,000 because of the problem related to Youtube.
In March 2019, YouTube stopped cooperation with Yeah 1 because of the company’s relation with SpringMe Pte Ltd (based in Thailand) which had operations not suitable to YouTube’s policies.
Yeah 1 stated that this was just a small problem, but its business results in Q2 and Q3 2019 were seriously affected: it took a loss of VND117 billion in Q2 and VND126.4 billion in Q3, which was contrary to the president’s hope that the group would bounce back with growth rates of 50-60 percent six months after the problem.
3/ In Forbes’ latest updates, Nguyen Dang Quang, president of Masan Group, now owns assets worth $1 billion and ranks 1717th on the list of the world’s billionaires.
Quang was added to the list in March 2019 with assets worth $1.3 billion. However, he later lost his position on December 12.
As president of Masan Group, Quang only directly holds 15 Masan shares. His stock assets come from shares held through relevant legal entities and relatives.
Thaco’s president spent big money to rescue Hoang Anh Gia Lai, while Vingroup’s president transferred the retail division to Masan to gather strength on automobiles and technology.
Two dollar billionaires in the banking sector emerged in 2019, which also witnessed competition that led to big changes in the economy.