Big shrimp exporter looks to escape CP Foods’ big net

January 08, 2013 | 08:00

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Vietnam’s biggest shrimp exporter is seeking new investors after rejecting a bid from CP Foods to buy a 40 per cent stake, saying the Thai firm wanted to swallow the Vietnamese corporation hook, line and sinker.

Minh Phu Seafood CEO Le Van Quang said that CP Foods had emerged from 15 investors to show an interest in investing in Minh Phu. Among four shortlisted candidates, two investors wanted to buy Minh Phu shares at VND45,000 each ($2.16), 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.

CP Foods then submitted its terms and conditions to buy a 40 per cent stake, which Quang said revealed that the Thai firm wanted to take over Minh Phu.

Phu said his corporation has since started to look for other investors, with plans to sell shares at VND80,000-90,000 ($3.84-4.32) each. Minh Phu’s trading price was in the range of VND31,000-32,000 ($1.49-1.54) per share in the first week of 2013.

The Vietnamese shrimp exporter, of which 10 per cent is owned by Singapore’s Temasek Holdings, 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. However, it was waiting for higher prices, said Quang.

Minh Phu decided to pay 25 per cent dividends for 2012, after not issuing a divided in 2011. Quang said his Mekong Delta-based corporation achieved better business results in 2012 compared with 2011, and saw no rush to sell stakes at “non favourable” prices.

Quang and his family hold more than 60 per cent of the outstanding shares in the company and at its annual general meeting in May, 2012 he agreed to continue as CEO.