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|VinEco was approved to increase its holdings with out a public offering|
The shareholders of Viet Thang Feed JSC have just approved VinEco Agricultural Investment, Development and Productions LLC. to increase its holdings without a public offering. VinEco currently holds 25 million shares, equivalent to 24 per cent of VTF’s charter capital. They will purchase an additional 37.6 million shares to raise ownership in VTF to the maximum of 60 per cent.
Earlier, VTF was a subsidiary of Hung Vuong Corporation (code: HVG), which held 90.38 per cent. On January 8, HVG. announced selling over 50 per cent of VTF to overcome financial difficulties. VinEco, a member of Vingroup, bought 24 per cent on March 1.
The total output of HVG’s fishery feed processing factories is more than 1.5 million tonnes per year, which is the highest in the sector and surpasses foreign producers like Cargill, CP, and Proconco. Three of VTF’s factories in Dong Thap received an investment of around VND1 trillion ($44 million) to produce 1 million tonnes per year. However, consumption reduced from 410,000 tonnes in 2014 to 331,000 tonnes in 2017.
VTF has invested heavily into pig husbandry in An Giang and Binh Dinh and a feed processing factory for poultry and livestock in Long An. However, they had to set aside a provision of VND375 billion ($16.5 million) in 2017. According to the firm’s financial report, VTF owes over VND2.1 trillion ($92.5 million) to BIDV, 65 per cent of its total capital, while half of the company’s assets—nearly VND1.6 trillion ($70.5 million)—are in receivables.
With VinEco as a new shareholder, the company has set a target of VND6.303 trillion ($277.7 million) of revenue and VND383 billion ($17million) of after-tax profit this year.
In addition to VTF, HVG has also sold numerous real estates at golden land plots recently, as well as 54 per cent of its capital in Sao Ta Foods JSC (FIMEX VN).