Vietnamese companies, typically agriculture-focus firm Pan Pacific Corporation and seafood firm Hung Vuong have been active in the M&A sectors.While Pan Pacific increases its investment in subsidiaries and affiliates, Viet Thang Feed – a unit of Hung Vuong – plans to delist its shares, following the takeover in April.
Pan Pacific boosts investment in subsidiaries
Listed agriculture and consumer goods firm Pan Pacific has announced to increase its investment in subsidiaries, using the proceeds from the company’s additional share issuance in January.
The majority of the money (VND576 billion, or $26.7 million) is invested in Pan Food, the consumer goods arm of Pan Pacific. The parent company has also increased ownership in Aquatex Ben Tre by spending VND4.6 billion, Vinaseed (VND35.8 billion) and Long An Food Processing and Export (VND21 billion).
On January 27, Pan Pacific finished selling 22.6 million shares to its shareholders and employees, raising VND771 billion. The money disbursed in the above companies accounts for VND637.7 billion.
In addition, it has transferred 3.4 million shares of Long An Food and 7.3 million shares of Aquatex Ben Tre to Pan Food, which is the major business of Pan Pacific. It targets to increase Pan Food’s charter capital by 10 times to VND1 trillion, by issuing 90 million shares. Pan Pacific will purchase the entire issuance to hold 99.99 per cent of Pan Food.
Viet Thang Feed plans delisting post acquisition
It is convening investors for an extraordinary shareholder meeting on August 7, to discuss this plan.
In April, Hung Vuong successfully purchased almost four million VTF shares to increase its holding to 90.28 per cent and become the parent firm.
VTF’s performance throughout recent years has been positive, with revenue standing between VND1-4 trillion. Its profit after tax last year reached VND154 billion. The company aims to up the revenue and profit to VND5.3 trillion and VND200 billion, respectively, this fiscal.
VTF has been listed for five years, and its stock price has been increasing nearly 80 per cent since then.
Meanwhile, Hung Vuong has been consolidating its operation through M&A activities. Most recently, it has gained a controlling stake of 53.5 per cent in Sao Ta Foods. Previously in March, the firm said to spend VND32 billion to own 51 per cent of its peer Tac Van Seafood. Hung Vuong is also the parent company of another public seafood company, An Giang Seafood Import Export, with 79.58 per cent.