The company, HAGL Rubber Corp, will become public one year after being listed on the national bourse, said deputy general director Vo Truong Son at the meeting.
The mother company, coded HAG on the Ho Chi Minh Stock Exchange (HoSE), will try to hold up to 65 percent of the rubber company’s shares after listing, as Singapore is a regional market attracting so many big investors, HAGL chief Doan Nguyen Duc told Thoi Bao Kinh Te Sai Gon newspaper.
In addition, a foreign company has valued HAGL Rubber Corp at $1 billion, he said.
According to Duc, the HAGL Rubber Corp has sold 4 percent of its stakes to three investors from Japan, the Netherlands and Vietnam for nearly VND1 trillion ($48 million).
In addition, the Singaporean firm Temasek has also spent about $ 55 million to buy the convertible bonds of the corporation to hold the right to convert those bonds into shares when the bonds mature.
Duc said on the sidelines of the meeting that the listing of HAGL Rubber Corp on the Singapore stock market is a part of HAGL deal with Temasek so that the latter could invest in the corporation by buying its convertible bonds.
Temasek also bought convertible bonds worth about $55 million issued by the mother company more than a year ago.
In 2012 and 2013, HAGL Rubber Corp will continue to plant more than 15,200 ha of rubber in Vietnam, Laos and Cambodia to finalize its initial plans to plant 51,000 hectares of rubber in three countries.
In such a turbulent economic context, Duc said HAGL has to be very flexible in finding capital for investment in rubber, hydropower, minerals, and real estate projects.
This means that HAGL will adopt a number of plans to issue bonds in the Vietnamese dong in the domestic market or in US dollars on international markets, including issuing convertible bonds so that the investors can convert tem into shares of HAGL subsidiaries and become their strategic partners.
Duc said the board of HAGL has also revised the target of pre-tax profits in 2012 to VND1.2 trillion, lower than the VND1.7 trillion targeted at the beginning of this year after considering the current difficult situation.
Realty price cut in sight
At the meeting, Doan Nguyen Duc said: "I cut the prices of HAGL real estate projects by 40 percent and 20 percent in 2009 and 2011 respectively, and in the next few months HAGL projects will be sold some 50 percent cheaper than those in the same market segment."
HAGL has many advantages over competitors including plentiful and cheap land areas, diversified business sectors, closed-process realty development, and abundant building materials.
The real estate developer also claimed that those projects will still be profitable despite a 50 percent discount.
The HAGL chief said its land areas are set aside for 16 projects with a total 2 million m2 of construction floor. Annually, HAGL will offer 2,000 apartments for the local market at competitive prices.
“Given the chance to buy cleared ground in nice locations at affordable price in the times of a market downturn, HAGL will continue to prepare for the future," he said.
Duc said he was not afraid to be regarded as a person who dumps property values by doing so.