No Va Real Estate Investment Group Corporation ( Novaland , stock code: NVL) has just announced unusual information on the Ho Chi Minh City Stock Exchange (HoSE) about receiving the decision of the Vietnam International Arbitration Center (VIAC) regarding the dispute between the plaintiff Novaland , Nova An Phu Company Limited and the defendant Saigon Co.op Investment and Development Joint Stock Company (SCID-SID).
Project perspective that Novaland has cooperated with SCID
Accordingly, the Arbitration Council declared that SCID must fully perform its obligations under the cooperation contract to develop a project of nearly 7 hectares in An Phu ward, Thu Duc city, Ho Chi Minh city with an amount of more than 11,000 billion VND.
Specifically, the Arbitration Council accepted the lawsuit request, forcing SCID to fully perform its obligations under the project development cooperation contract signed on December 30, 2016 between the three parties. If the defendant fails to fulfill its commitment, Novaland has the right to carry out legal procedures to receive the land allocation decision from the competent authority, ensuring its legitimate rights.
The Saigon Co.op An Phu (An Phu Complex) project has a scale of 6.9 hectares, including a commercial center, luxury apartments, offices and hotels. The project was initially invested by SCID's parent company in 2000, then transferred to SCID in 2010. Compensation and site clearance were completed in 2015. In 2019, SCID was officially approved by the Ho Chi Minh City People's Committee as the investor, with a plan to receive land within 3 years.
On Novaland’s side, in 2013, the company raised VND255 billion from the issuance of 25.5 million shares to finance three projects, including Saigon Co.op An Phu. In 2015, SCID received VND102.5 billion in deposits from Novaland.
However, the implementation process was delayed due to the COVID-19 pandemic and changes in legal procedures. In mid-2023, SCID submitted an application for adjustment of the investment policy decision and land allocation. The company is also negotiating with Novaland to terminate cooperation in this project. Currently, SCID has not found a replacement partner.
Closing the trading session on March 14, NVL shares increased to the ceiling price, up to 11,100 VND/share after the above information.
Source: https://nld.com.vn/novaland-thang-kien-vu-tranh-chap-tai-du-an-quy-mo-hon-11000-ti-dong-196250314151414962.htm
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