Group keen to ally concerns arising from Q1 financial statements.
Recognizing the concerns of shareholders and investors regarding short-term loans noted in its financial statements for the first quarter of 2015, the Hoang Anh Gia Lai JSC (HAGL, stock code: HAG) recently released more detailed information.
The two first items disclosed in the report include convertible bonds issued to Northbrooks Investment (Maritius) Pte Ltd worth VND1.1 trillion ($50.4 million), expiring on August 31, and bonds exchanged for shares in the agriculture sector issued for the company worth VND1.13 trillion ($51.8 million), expiring on July 15.
“The conversion period and the expiry date of these bonds can be extended in such a way that can bring the best benefits to both parties and is compatible with the movements in stock market,” the report said.
Bonds with warrants to holders of bonds in the agriculture sector worth VND2 trillion ($91.7 million), expiring on December 5, have been disclosed in the third item. The warrants’ implementation period and the expiry date of these bonds can be also extended in such a way that can bring the best benefits to both parties and is compatible with the movements in stock market.
“For three first items, due to disadvantageous movements in Vietnam’s stock market, the company is completing procedures to extend the conversion periods and expiry dates,” HAGL’s General Director Vo Truong Son said in the report.
Regarding short-term bank loans worth VND1.78 trillion ($81.9 million), which are used for the purpose of funding the Group’s working capital, they always circulate with stable balances.
With a current portion of long-term bank loans worth VND1.32 trillion ($60.9 million), according to Mr. Son, the business plan and cash flows of the Group can easily cover this amount.
“Above is the company’s detailed explanation, wishing to provide shareholders and investors with a full view of the Group’s balances on short-term loans to make rational decisions,” he said in the report.
With strong financial resources and professional management, HAGL has made tremendous strides forward in expanding its operations overseas. In its orientation towards 2013 - 2015, the Group gives a sharp focus on developing the two major sectors of agriculture and real estate.