Foreign fund Creed Group sold AGG shares, earning 1 million USD

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Accordingly, Creed Investments has divested a part of its capital at AGG, reducing the holding rate from 5.9 million shares, equivalent to 7%, to 5 million shares, equivalent to 6%.

Representative of AGG said Creed Investments sold the above shares to restructure the investment portfolio. Trading was conducted in session 8/10. Although the transaction method is not announced as agreement or order matching on the floor, but with an average market price of 30,000 VND / share of AGG, this shareholder is likely to have earned over 1 million USD.

This is the second divestment of Creed Investments at AGG, earlier in August this major shareholder also sold more than 3.7 million shares of AGG, reducing the ownership rate from 12% to 7%. The value of the deal fluctuated around $ 4 million.

Creed Investments VN-1 belongs to the investment fund Creed Group, Japan. Creed Group is managing 2 funds with investment activities in AGG, including Creed Investments VN-1 representing investments in 2015 and another fund representing Hoosiers’ capital contribution in 2017.

Creed Group once shared, the proceeds from the sale of AGG shares will be reinvested by the group and together with AGG to implement more strategic projects in the future, in which the series of The Standard projects has just been announced on July 23.

This move of Creed Group took place in the context of business situation of AGG facing difficulties. The semi-annual financial report 2020 shows that the first half of the year net sales decreased 67% compared to the same period last year, reaching VND 60 billion.

However, the acquisition of subsidiary group Hoang An, the owner of The Song project by AGG, helped finance revenue increase 170 billion compared to the first 6 months of 2019, thereby helping the company to make a profit of 192 billion dong, up 160%.

It is known that in 2020, AGG sets a target of 2,400 billion dong in revenue and 410 billion dong in profit after tax of the parent company’s shareholders, up 523 percent and 38 percent year-on-year, respectively. Thus, by the end of the first 6 months of 2020, AGG has only completed 2.5% of its revenue target but has completed 46% of its profit target.

It is expected that this year, AGG will deploy the Westgate project (Binh Chanh) and launch The Standard (Binh Duong), in addition to the handover of River Panorama (District 7). The company continues to invest in affordable and mid-end apartments. Besides more than 33 hectares of land fund in the city. Ho Chi Minh City, AGG will develop more than 46 hectares of land fund in neighboring provinces such as Long An, Binh Duong, Dong Nai to develop self-contained adjoining housing areas, towards becoming an urban developer in 5 years.

As of June 30, 2020, AGG has up to VND 5,050 billion of inventories, which is nearly 2 times higher than the number at the beginning of the period, mainly focusing on The Song project (VND 1,955 billion), River Panorama 1 and 2 respectively 945.5 and 940 billion.

Source: vietnamfinance.vn – Translated by fintel.vn