The government will retain 51 per cent of Vietnam Southern Food Corporation Ltd. (Vinafood 2) after equitisation, a decrease from the earlier expected 65 per cent.
According to a recent directive by Deputy Prime Minister Vuong Dinh Hue, compliant to the Prime Minister’s Decision 58/2016/QD-TTg dated December 28, 2016 on the criteria to classify state-owned companies, companies with state ownership, and the list of state-owned companies that will be restructured in 2016-2020, the government is going to hold 51 per cent of Vinafood 2.
The company will be re-evaluated and is now required to resolve all of its financial issues before equitisation.
Established in 2010, Vinafood 2 is one of the country’s largest rice exporters. It has been reporting continuous losses in recent years. As of the end of 2015, the company had a cumulative loss of VND950 billion ($42.6 million). Account receivables stood at VND653 billion ($29.3 million).
Earlier, according to a plan submitted by the Ministry of Agriculture and Rural Development to the Prime Minister, Vinafood 2 was to be valued at nearly VND5 trillion ($224.2 million) after the equitisation. The government was to retain a 65-per-cent stake, worth VND3.25 trillion ($146.4 million), while strategic investors would have received 25 per cent, worth VND1.25 trillion ($56.3 million). 8.95 per cent would have been offered to foreign and domestic investors and the remaining would have been distributed among Vinafood 2’s staff.
By Hong Anh