Vinafood 1 subsidiary selling 34 per cent stake

October 04, 2016 | 09:34

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Vinafood 1 Flourmill & Trade, a subsidiary of state-owned Vietnam Northern Food Corporation (Vinafood 1), is selling 8.2 million shares, a 34 per cent stake.

The shares will be auctioned at the initial price of VND10,000 (45 US cent) per share on October 28. Domestic and foreign investors are invited to register and submit the deposit by October 21 to participate in the event.

Vinafood 1 Flourmill & Trade produces and processes food, flour, and related products and produces and trades animal feed production materials. Vinafood 1 Flourmill & Trade expects its chartered capital to reach VND242 billion ($10.85 million) after going public, of which Vinafood 1 is going to hold 65 per cent, employees 0.99 per cent, and other investors 34 per cent.

Vinafood 1 Flourmill & Trade earned a revenue of VND252 billion ($11.3 million) and a net profit of VND894 million ($40,000) in the first half of 2016. As of the end of June, 2016, its total assets value was VND316 billion ($14.1 million). The company targeted to pay a dividend of VND200 (0.8 US cent) per share in 2017. The figures for 2018 and 2019 are VND220 (0.9 US cent) and VND240 (1 US cent), respectively.

At the moment, the company holds land use rights over three plots of land, all in three major cities in Vietnam. One is the headquarter at 94 Luong Yen street, Hai Ba Trung district, Hanoi with an area of 408.3 square metres, the second is a 20,842-square metre plant in Vinh city, and lastly, the 19,805-square metre flour production facility in Hai An district of Haiphong.

In 2015, Vinafood 1 Flourmill & Trade earned a revenue of VND527 billion ($23.6 million), down 29 per cent on-year, and incurred a loss of VND2.7 billion ($121,000) in light of a net profit of VND143 million ($6,400) in 2014.

Parent company Vinafood 1 expects to sell a part to the public in 2017.