<article>Vietnam-based multi-sector firm <a href="https://www.dealstreetasia.com/tag/T&amp;T-Group/">T&amp;T Group</a> plans to spend approximately $56 million to acquire a 25 per cent strategic stake in IPO-bound Vietnam Southern Food Corporation (Vinafood 2).</article>

Vietnam-based multi-sector firm <a href="https://www.dealstreetasia.com/tag/T&amp;T-Group/">T&amp;T Group</a> plans to spend approximately $56 million to acquire a 25 per cent strategic stake in IPO-bound Vietnam Southern Food Corporation (Vinafood 2).
Vinafood 2 is set to conduct an initial public offering (IPO) on March 14. Despite being a major firm in Vietnam’s agriculture sector, its IPO has not attracted investor attention due to its poor business performance over the past several years, according to experts. In a statement, Vinafood 2 said that T&amp;T Group was the only company to submit a bid to become a strategic investor so far.
Under the equitization approved by Prime Minister, Vinafood 2 will sell nearly 23 per cent of its capital (114.8 million shares) in its IPO, another 25 per cent to strategic investors, and the remainder to its employees and workers at a preferential price.
With the price for the strategic stake sale expected to at least match the IPO starting price of VND10,100 ($0.45) per share, T&amp;T Group may have to pay at least VND1.26 trillion ($56 million) to purchase the 25 per cent stake.
The interest in acquiring a Vinafood 2 stake comes as T&amp;T Group plans to expand its presence in the agricultural sector.
In 2015, T&amp;T Group and Saigon Hanoi Insurance Corporation, both wholly-owned by Chairman Do Quang Hien, acquired 35 per cent of the outstanding shares of Vietnam National Vegetable, Fruit and Agricultural Product Corporation JSC (Vegetexco), marking a foray into the agricultural sector of the multi-sector firm.
T&amp;T also acquired a 50 per cent stake in Ha Noi Import Export and Investment Company (Unimex Hanoi), part of Hanoi Trade Corporation (Hapro), in 2015.
Vinafood 2 is one of the largest rice traders in Vietnam with an annual output of 2.8-3.0 million tons of rice, export turnover of over $1 billion. The agriculture firm is targeting VND11.89 trillion ($523.1 million) net revenue and VND118 billion ($5.19 million) after-tax profit in the first year after equitization.
Its net revenue in 2016 stood at VND9.95 trillion ($437.8 million), down 36 per cent year-on-year. By the end of 2016, the company recorded a net loss of VND798 billion ($35.1 million). By mid-2017, the accumulated loss had increased to VND912 billion ($40.1 million).
T&amp;T Group was established in 1993. It operates in the fields of finance, industry, minerals, real estate and exports.
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Vinafood 2 plans to sell nearly 23% of its capital in its upcoming IPO and another 25% to strategic investors.

T&T Group seeks to acquire 25% of Vietnam's rice exporter Vinafood 2

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T&T Group seeks to acquire 25% of Vietnam's rice exporter Vinafood 2

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