Japanese conglomerate Mitsui has committed $100 million in Vietnam-based seafood processor Minh Phu’s upcoming private placement.
Minh Phu confirmed one of the bidders for its private placement of 75.72 million shares was Mitsui. The company could not reveal four other investors from the US, Japan and South Korea because of confidentiality issues.
Meanwhile, the Vietnamese government portal said the commitment from Mitsui was $100 million.
The 75.72 million new shares translate into a value of $152.7 million based on Minh Phu’s current share price, representing 35 per cent of the company’s equity interest upon closing the transaction.
Foreign investors currently own an aggregated 9.96 per cent stake in Minh Phu.
The seafood firm is traded on the local UPCoM (unlisted public companies market). It said to move to the Ho Chi Minh City Stock Exchange (HOSE) after the private placement deal is finalised. HOSE is home to Vietnam’s biggest publicly traded companies including Vinamilk, Vingroup, Sabeco, Masan and Techcombank.
Minh Phu specialises in shrimp exports, which reach $700 million annually. With the participation from Mitsui, it is expected to hit $1 billion.
This is not the first time the Japanese keiretsu will be partnering with Minh Phu. In 2013, Mitsui acquired 31 per cent of Minh Phu Hau Giang, an affiliate of the Vietnamese seafood major.