A Cascade of Changes
Mr. Nguyen Chi Thang has recently tendered his resignation from the Board of Directors of Hoang Anh Gia Lai Joint Stock Company (HAG), effective May 10th, citing personal reasons.
Mr. Thang had been a member of HAG’s Board since April 28th, 2023, but his association with the company dates back to March 1994 when it was founded by Mr. Doan Nguyen Duc (“Bầu Đức”), the current Chairman of the Board. Mr. Thang does not currently hold any shares in HAG.
The new HAG logo shares a similar color scheme with LPBank’s.
With Mr. Thang’s departure, the HAG Board now comprises four members: Chairman Doan Nguyen Duc, Vo Truong Son, Vo Thi My Hanh, and Tran Van Dai.
Mr. Thang’s resignation comes alongside that of Mr. Le Hong Phong, a member of HAG’s Supervisory Board, who also stepped down on May 10th.
These changes in HAG’s leadership coincide with the emergence of a new major shareholder. On April 25th, LPBank Securities announced that it had successfully acquired 50 million HAG shares, equivalent to a 4.73% stake in the company.
Additionally, individuals associated with LPBank Securities also hold significant amounts of HAG shares. For instance, Mr. Le Minh Tam owns 28 million HAG shares, Mr. Nguyen Duc Binh holds 1.3 million, Ms. Tran Thi Thu Huong has 5.65 million, and Ms. Pham Le Thi Hong Hoa possesses 4.68 million.
Combined, LPBank Securities and its related individuals now hold 89.63 million HAG shares, representing an 8.47% stake, making them a significant force in the company.
Aside from LPBank Securities, Thaigroup and Mr. Le Minh Tam have also acquired 80 million HAG shares. These investors are connected to LienVietPostBank, with Mr. Nguyen Duc Thuy (“Bầu Thụy”) serving as the bank’s Chairman.
Prior to the arrival of these new shareholders, HAG unveiled a new brand identity featuring a refreshed color palette. The new logo retains the same layout and meaning as its predecessor but adopts a new color scheme—a combination of yellow, brown, and white—that bears a resemblance to LPBank’s logo.
According to HAG, the updated logo symbolizes the company’s commitment to unity, consistency, and harmony in its mission to produce clean and safe agricultural products through circular agriculture practices. Founded in 1993, this is the first time in over three decades that HAG has altered its logo.
A Resolve to Repay Debts
In late 2023, HAG sold its entire stake in the University Medical Center – Hoang Anh Gia Lai Joint Stock Company to a third party for VND 370 billion, resulting in a profit of over VND 240 billion, which was recognized as financial income for 2023. With a sale price of VND 37,374 per share, Bầu Đức divested 99% of the hospital’s capital.
The University Medical Center – Hoang Anh Gia Lai Joint Stock Company is a collaboration between the University Medical Center in Ho Chi Minh City and Hoang Anh Gia Lai. Located in the center of Pleiku City, Gia Lai Province, the hospital has been operational since early 2012 and currently comprises 11 inpatient departments, 6 functional rooms, and 20 specialized clinics.
However, this is not the first time Bầu Đức has had to sell assets to repay debts. In September 2023, Hoang Anh Gia Lai sold the Hoang Anh Gia Lai Hotel for VND 180 billion.
Bầu Đức’s Hoang Anh Gia Lai is undergoing significant transformations.
In the past, both the University Medical Center and the Hoang Anh Gia Lai football club were considered sentimental assets that Bầu Đức was determined to hold onto at all costs, even during the company’s most challenging periods. Despite carrying massive debts amounting to tens of thousands of billions of dong, he never included these two entities in his restructuring or divestment plans.
However, with the resolve to become debt-free by 2025, Bầu Đức’s priorities may have shifted. After 22 years of dedication and an investment of VND 2,000 billion in football development, resulting in numerous achievements and positive impacts, Hoang Anh Gia Lai may now be on the path to new ownership as part of a comprehensive debt repayment strategy.
Historically, Bầu Đức has had to part ways with valuable assets that he painstakingly built. Once a prominent figure in the real estate industry, he has repeatedly sold properties and scrambled for cash flow to settle debts following setbacks in his agricultural ventures.
For instance, during the 2010-2012 period, HAG sold the Hoang Anh Gia Lai Resort in Quy Nhon and Dalat. Specifically, in 2010, amid challenges in the real estate market, HAG offloaded the Hoang Anh Gia Lai Resort in Quy Nhon to a third party for VND 175 billion, booking a profit of over VND 99 billion.
In 2012, HAG concluded the sale of the Hoang Anh Gia Lai Resort in Dalat. While this transaction was not widely publicized, the 2012 financial report disclosed the resort as a short-term investment worth nearly VND 82 billion, approved for liquidation to a third party, pending legal procedures.
Even the Hoang Anh Gia Lai football club, a sentimental asset, is now considering a change in ownership.
From 2006 to 2012, real estate was HAG’s primary business segment, consistently generating the highest revenue year after year. However, in 2019, the company exited the real estate sector by selling the Hoang Anh Gia Lai Myanmar Centre to Thaco. HAG had initially ventured into the Myanmar market with high hopes for the project, which included an office building, a commercial center, and a 5-star hotel that commenced operations in August 2016.
Nevertheless, as part of its restructuring efforts, HAG had to abandon its real estate endeavors in Myanmar. In September 2019, the company’s Board of Directors approved the sale of nearly 48% of the capital in Hoang Anh Gia Lai Land—the entity managing HAG’s real estate projects—to Dai Quang Minh for nearly VND 2,778 billion.
Hoang Anh Gia Lai Land was responsible for the Hoang Anh Gia Lai Myanmar Centre project in Yangon, Myanmar. With the completion of this sale, Bầu Đức fully withdrew from the real estate sector.
HAG will hold its shareholder meeting with the participation of major shareholders following the restructuring phase.
Additionally, in 2019, HAG divested from the hydropower sector, transferring over 99.4% of its capital in Hoang Anh Gia Lai Hydropower to a partner. According to the Q3/2019 financial report, the original investment value in Hoang Anh Gia Lai Hydropower was VND 2,532 billion, but HAG had to provision nearly VND 755 billion.
Two years later, in 2021, HAG decided to sell its stake in Hoang Anh Gia Lai Agriculture International Joint Stock Company (HNG) to Thaco.
