According to information from No Va Real Estate Investment Group Joint Stock Company (Novaland), the company is preparing to present to shareholders its plan to issue shares to exchange debt. Subsequently, it will submit the dossier to the State Securities Commission to implement the next steps.
Per Novaland, this issuance aims to exchange debts with some major shareholders who have sold secured assets to help the company repay loans and bonds that fell due during a challenging period. The two large shareholders on this list are NovaGroup and Diamond Properties.
Novaland stated that during the most difficult times, the major shareholders committed to accompanying and supporting the company in repaying due debts when necessary and maintaining continuous operations. As per the signed agreements, over the three years from 2022 to 2024, the shares pledged by these shareholders to guarantee the group’s debt obligations have been sold to repay debt, corresponding to the debt obligations that Novaland recognized for these shareholders in its financial statements.
The two major shareholders, NovaGroup and Diamond Properties, are both related to Mr. Bui Thanh Nhon.
Previously, at the end of 2021, when Novaland had not yet faced financial difficulties, the group of shareholders related to Mr. Bui Thanh Nhon, Chairman of Novaland’s Board of Directors, held over 61.4% of the company’s capital. However, starting in 2022, NVL shares began to plummet due to market fluctuations and financial crises, leading to various debt handling actions by this group of shareholders.
To “rescue” Novaland, the major shareholder group borrowed shares to sell and repay debts, simultaneously proactively reducing their ownership ratio from 60.8% (June 2022) to 38.7% (December 2024).
Most recently, five shareholders related to Mr. Bui Thanh Nhon continued to register to sell nearly 19 million NVL shares to restructure their investment portfolio and support Novaland in handling debts. If the transaction is successful, the ownership ratio of this group at Novaland will decrease to 37.4%.
Novaland stated that it would soon disclose the details of the number of shares to be issued and affirmed its commitment to transparency throughout the process, ensuring fairness for all shareholders. The company acknowledged that the share issuance might cause short-term dilution but pledged, together with the major shareholders, to strive to fulfill the recovery plan, guaranteeing the interests of shareholders and related parties.
As of the trading session on May 19, NVL shares rose slightly by VND 100, trading at VND 12,250 per share.
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