Business

Vinafood 2 sets out its equitization to offer 25 per cent stake for strategic investors

January 04, 2018 | 12:10 AM GMT+7

Viet Nam Southern Food Corporation (Vinafood 2) recorded a business loss in the first half of last year and is maintaining a long-term debt of VND3,770 billion (roughly US$166.26 million).

Products of Vinafood 2

The equitization plan of Vinafood 2 in the form of selling State shares in the company has been approved.

Vinafood 2’s chartered capital is VND 5,000 billion (roughly US$220.51 million), of which the State holds 255 million shares, representing 51 per cent of its charter capital. The Ministry of Agriculture and Rural Development will be the representative of state ownership in the company after the equitization.

The number of shares auctioned to ordinary investors is 114.8 million shares, accounting for 22.97 per cent of the company’s charter capital. The starting price of the auction is VND10,100 (roughly US$0.4454) per share.

Strategic investors will buy 125 million shares, representing a quarter of Vinafood 2’s charter capital. According to Vinafood's invitation to investors, the criteria for choosing strategic investors include businesses having the total asset of at least VND10 trillion (roughly US$441.01 million) and the minimum chartered capital of VND3,500 billion (roughly US$154.355 million). The strategic investors must also record positive after-tax profit in three consecutive years and there must be no accumulated losses by the end of 2015.

Strategic investors must also commit to joining the company in implementing agricultural restructuring, linking with farmers to form a value chain in the field of rice production and export.

Vinafood 2 is specialized in the field of trade, food import, and export, processed food, agricultural products, and storage. The company currently owns the distribution system throughout the southern provinces of Vietnam.

However, the company is facing a lot of financial obstacles. According to the report released at the end of June 2017, the company had total assets of VND8,799 billion (roughly US$388 million) and long-term loans of VND3,770 billion (roughly US$166 million). The equity and accumulated loss of the company were recorded at VND 3,885 billion (roughly US$ 171.33 million) and VND912 billion (roughly US$40.22 million).

In the first half of last year, Vinafood 2 reported a loss of VND118 billion (roughly US$5.2 million) while it gained VND156 billion (roughly US$6.88 million) in profit in 2016.

Solar & Storage Live Vietnam returns, leading sustainability and innovation in energy sector

Solar & Storage Live Vietnam returns, leading sustainability and innovation in energy sector

Business -  1 week

Solar & Storage Live Vietnam event has been running since 2017 and the 2025 edition will be the biggest yet.

New alliance pushes ESG standards for Vietnamese businesses

New alliance pushes ESG standards for Vietnamese businesses

Business -  1 month

A new partnership between EY and the Vietnam-Singapore Board Forum (VSBF) is set to strengthen ESG capabilities for Vietnamese businesses, helping shape more sustainable business models.

US giant backs Vietnam’s bid to lead ASEAN gas trade

US giant backs Vietnam’s bid to lead ASEAN gas trade

Business -  1 month

With strategic deals and strong policy alignment from the Vietnamese government, Excelerate Energy aims to anchor Vietnam’s LNG ambitions in the region.

Frasers Property, SPX Express sign deal for largest sorting centre in Southeast Asia

Frasers Property, SPX Express sign deal for largest sorting centre in Southeast Asia

Business -  1 month

Scheduled for completion in 2027, the logistics facility will be the first of its kind in Vietnam significantly boosting parcel processing capacity up to 7 million parcels daily.

Gamuda Land secures VND3,750 billion loan for Eaton Park project

Gamuda Land secures VND3,750 billion loan for Eaton Park project

Business -  1 month

Gamuda Land will use the loan to invest in a luxury real estate project in Ho Chi Minh City.

WHA Group accelerates industrial park investment in Vietnam amid tariff tensions

WHA Group accelerates industrial park investment in Vietnam amid tariff tensions

Business -  1 month

Amid global economic volatility, WHA Group has rapidly rolled out multiple expansion projects in Vietnam, signaling its strategic focus on the country.