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Minh Phu Seafood
The company’s annual general meeting last week approved its delisting plan for all 70 million shares on HoSE.
Minh Phu Seafood chairman Le Van Quang had earlier said Thai firm CP Foods last year emerged from 15 investors to show an interest in investing in Minh Phu. Among the four shortlisted candidates, CP Foods proposed VND50,000 ($2.4) and a Japanese company put at VND59,000 ($2.83). Minh Phu found CP Foods, with shrimp exports being one of its business scopes, more suitable than the others.
On the exchange, the Minh Phu share price is in the range of VND25,000-30,000 in the past few years and now, and the CP Foods offer is a double of that. Meanwhile, Vietnamese laws state listed companies cannot sell shares to investors at prices 7 per cent higher than the market price. This rule makes it impossible to accept the CP Foods offer.
According to Quang, his firm is focusing on a plan to issue 30 million new shares through public auctions as mentioned in the company’s 2012 annual general meeting resolution. CP Foods wants to buy a 40 per cent stake of Minh Phu by purchasing a 30 per cent through new shares and 10 per cent from existing shareholders.
Quang and his wife hold almost 48 per cent of the company’ stakes. Major investor Red River Holdings keeps 9.47 per cent, Vietnam Investment Fund 6.81 per cent and Long Phung Invest 5.84 per cent. The rest belongs to minor shareholders.