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|Dairy cows in a Mộc Châu farm. GTNFoods Joint Stock Company has become a shareholder of the Việt Nam Livestock JSC, the parent company of Mộc Châu Milk Company.-Photo opentour.vn|
The deal was disclosed by GTNFoods’ management board at the company’s annual shareholder meeting held on Tuesday.
At the meeting, GTNFoods’ vice-chairman Nghiêm Văn Thắng said the deal was completed in early 2017 and includes an advance payment of VNĐ800 billion in the form of share issuance.
Before the deal, Vilico was a State-owned enterprise and managed by the Ministry of Agriculture and Rural Development. In June 2016, the ministry completed offloading its entire 77.59 per cent stake in Vilico to a strategic investor.
Last year, GTNFoods acquired 95 per cent capital in Việt Nam Tea Corporation (Vinatea) for around VNĐ500 billion.
In 2017, GTNFoods is targeting a combined revenue of VNĐ3.95 trillion and a post-tax profit of VNĐ225 billion, taking into account the performance of Mộc Châu Milk Company and Vinatea.
In 2016, GTNFoods earned a combined revenue of VNĐ1.82 trillion and a post-tax profit of VNĐ16 billion, equal to 71 per cent and 16 per cent, respectively, of the targeted numbers. The figures were down 14 per cent and 72 per cent, respectively, compared to 2015’s numbers.
GTNFoods is being listed on the HCM Stock Exchange with code GTN. GTNFoods’ shares closed down 1.9 per cent to VNĐ15,800 per share on Wednesday after jumping 8.8 per cent in the previous two sessions.