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|T&T wants to become strategic investor of Vinafood 2|
According to information published by Vinafood 2, despite the fact that T&T only meets two thirds of the criteria issued by Vinafood 2 to select the strategic investor, the Ministry of Agriculture and Urban Development has still submitted the application to the prime minister as T&T is the sole applicant.
According to the approved equitisation plan, interested investors are permitted to buy a maximum of 125 million shares or 25 per cent stake at a selling price not lower than the lowest winning bid at Vinafood 2’s initial public offering (IPO). With the initial price of VND10,100 at the IPO, T&T may spend at least VND1.26 trillion ($55.47 million) buying the 125 million shares.
|Along with the share volume offered for the strategic investor, the company will put 114.83 million shares, equalling 22.97 per cent of the charter capital, on sale via a public auction with the starting price of VND10,000.|
Along with the share volume offered for the strategic investor, the company will put 114.83 million shares, equalling 22.97 per cent of the charter capital, on sale via a public auction with the starting price of VND10,000. Besides, it offered 4.969 million shares for employees and 200,000 shares for the corporation’s trade union. After the equitisation, the state will retain 255 million shares or 51 per cent of the charter capital.
Previously, Vinafood 2 has issued the criteria to select the strategic investor. Notably, interested firms must be in operation for at least five years, with at least three years of experience in dealing with agricultural products as well as food manufacturing and processing.
Furthermore, investors must have a charter capital of at least VND2.5 trillion ($110.06 million) and must have been free of accumulated loss at the end of 2016. Besides, investors must commit to restructuring Vinafood 2 to improve the manufacturing and processing of agricultural products and foodstuff. Investors will also commit to keeping the acquired shares for at least five years.
As per Vinafood 2’s 2016 financial report, the company achieved net sales of VND9.95 trillion ($438 million), a year-on-year decrease of 36 per cent, and after-tax profit of VND157 billion ($7.7 million), up 15 per cent over the previous year. At the end of 2016, Vinafood 2’s accumulated losses stood at VND798 billion ($35.1 million). As of December 31, the actual value of the parent company was VND14.61 trillion ($643.2 million), of which the actual value of state capital was VND5.38 trillion ($236.8 million).
T&T group operates in numerous sectors, including property, finance, industry, investing in sports and import-export trading. Besides, on February 6, 2018, T&T Group and Boskalis Group from Netherlands signed an agreement to co-operate in the seaport sector.