Specifically, the assets to be restructured by the Company include the C1 apartment building project in Binh An Ward, Di An City, Binh Duong Province (commercially known as LDG Sky) directly developed by LDG as the investor; and the Bai But – Son Tra Beach Resort project (commercially known as LDG Grand Da Nang) developed by Hai Duy Joint Stock Company – a subsidiary of LDG. In addition, the Company may also restructure other assets belonging to the Company or its subsidiaries.
The restructuring plan involves the Company collaborating with financial partners to develop the projects. Furthermore, LDG may transfer a portion or all of the projects, as well as a portion or all of LDG’s ownership in subsidiary companies.
The purpose of the asset restructuring is to repay bond debts, bank debts, and other debts of LDG, while ensuring financial resources for project development.
According to LDG’s 2022 annual report, LDG Sky project has a total investment of nearly 4.7 trillion VND, carried out on a land area of over 18,000 square meters, with a scale of 5 blocks and 30 floors each.
LDG Sky apartment project in Binh Duong
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Meanwhile, LDG Grand Da Nang project has an area of nearly 291,000 square meters with a total investment of over 8 trillion VND, including a multi-functional commercial-service-entertainment area. It is known that LDG acquired this project after receiving the transfer of 9.99 million shares (99.9%) of Hai Duy Joint Stock Company in 2019.
LDG Grand Da Nang project
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Notably, neither of these projects has any production or business value at the end of 2023.
Regarding the Company’s financial situation, on December 27, 2023, LDG’s Board of Directors announced the cancellation of the ESOP share issuance plan which had been approved just over a month prior.
LDG stated that due to the low stock price and the impact from certain objective reasons, the issuance of ESOP 2023 is not suitable for the current situation.
In addition, LDG has to restructure its assets amidst a record loss in 2023 with a net loss of over 374 billion VND. The main reason comes from a negative net revenue of nearly 37 billion VND due to the value of returned goods being nearly twice the revenue from real estate business.
Although the news of selling assets to repay debts is not positive, LDG’s stock price immediately hit the daily trading limit on March 7, 1 day after the resolution on asset restructuring was approved. Not only reaching the limit price of 3,210 VND/share, LDG’s stock also recorded the highest trading volume in nearly 3 months with nearly 11 million shares.
| Stock price movement from December 2023 to date |
