After the purchase, National Seed will hold a 61.4 per cent stake in Southern Seed and become its mother company. The move is part of Pan Pacific’s consolidation strategy in the food and agribusiness sector, in Vietnam.
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Southern Seed has two other major shareholders, the State Capital Investment Corp with 18.6 per cent and Saigon Securities Inc with 19.8 per cent.
In November 2014, National Seed bought 2.29 million Southern Seed shares, reportedly, spending VND142 billion ($6.67 million).
For the 40 per cent initial stake acquisition in the targeted company, National Seed had to shell out VND370 billion ($17.4 million). Meanwhile, earlier in the year, Pan Pacific took control of National Seed by acquiring nearly 55 per cent of the firm.
Pan Pacific, which has just received $ 6.5 million funding from World Bank Group company International Finance Corporation, to support its expansion in the agribusiness and food industry, already owned 62.4 per cent in Ben Tre Aquaproduct Import and Export and 23 per cent in Long An Food Processing.
At a shareholder meeting in May, 2014, Pan Pacific also revealed that it plans to push its merger and acquisition (M&A) plans.
SSC closed Friday flat at VND54,500 ($2.56), while NSC ended 1.9 per cent lower to VND76,000 ($3.57).
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