Vietnam - Myanmar - Indochine Counsel Advised Thaco Group In A Strategic Investment And Acquisition Of Stakes In HAGL Agrico And HAGL Myanmar Center Project.

Legal News & Analysis - Asia Pacific - Vietnam - Myanmar - Corporate/M&A

23 October, 2018

 

Indochine Counsel is pleased to announce that the firm advised Truong Hai Auto Corporation (“THACO”) and its subsidiary, Dai Quang Minh Real Estate Investment Corporation (“DQM”), in a strategic investment and acquisition of stakes in Hoang Anh Gia Lai Agricultural JSC (“HAGL Agrico” – Stock code: HNG) and Hoang Anh Gia Lai Construction and Housing Development JSC (“HAGL Land”) which develops and owns the HAGL Myanmar Center Project in Yangon, Myanmar.

 

Both HAGL Agrico and HAGL Land are subsidiaries of Hoang Anh Gia Lai Group (“HAGL” – Stock code: HAG). On 6 August 2018, in the presence of Prime Minister Nguyen Xuan Phuc, THACO and HAGL announced this strategic deal to develop the latter’s agricultural business into a leader in Vietnam and the region, and develop the second phase of the HAGL Myanmar Center Project.

 

As part of the deal, THACO has purchased convertible bonds worth VND3.8 trillion (US$163.1 million) issued by HAGL Agrico, and would purchase further shares from the existing shareholders, so as to hold 35% stake in HAGL Agrico. Via DQM, THACO has also purchased and holds 51% shares in HAGL Land, for VND4 trillion (US$171.63 million), which will be later increased to 65%. THACO and DQM will be in charge of developing the second phase of the HAGL Myanmar Center Project by 2020 at a cost of U$320 million. In addition, THACO committed to help HAGL restructure its debts worth VND12 trillion (US$516.3 million) and mobilise funds to develop the agriculture business.

 

The deal is one of the largest deals ever reached on the stock market between the two local private groups in Vietnam. Dang The Duc, Managing Partner, leads the Indochine Counsel’s team, assisted by Dang Hoan My, Junior Associate.

 

You may find also some public information for this strategic deal at the following links from the local media and Thaco’s website:

 

https://vietnamnews.vn/economy/463516/thaco-signs-strategic-deal-with-hagl.html#L2T5jOemuaov076f.97

https://english.thesaigontimes.vn/61883/thaco-invests-us$335m-in-hagl.html

https://www.vir.com.vn/thaco-sets-foot-in-agriculture-61514.html

https://www.vir.com.vn/powerful-gains-behind-thaco-hagl-deal-62106.html

http://www.thacogroup.vn/en/communications/News/060406/hagl-and-thaco-go-hand-in-hand.aspx