Biên Hòa Sugar JSC to be delisted from HOSE

Workers at Biên Hòa Tây Ninh Sugar Factory package products for sale.

The company said in its statement on Monday that the shares were being delisted to conduct a share swap with Thành Thành Công Tây Ninh Sugar JSC in accordance with the M&A agreement between the two companies.

Shares of Biên Hòa Sugar JSC will be delisted from the stock exchange on August 30 and the last trading day is August 29.

Shares of the two sugar producers have gained significantly since May on market speculation of a merger between the two largest companies in the sugar industry.

The two sides on June 7 signed a merger agreement to create the largest sugar company in Việt Nam with 30 per cent market share.

Under the agreement, Thành Thành Công Tây Ninh Sugar JSC will swap its shares with more than 300 million shares of Biên Hòa Sugar JSC at the rate of 1:1.02, which means each share of Biên Hòa Sugar is equal to 1.02 shares of TTCS.

Shares of both companies are listed on the HCM Stock Exchange. SBT is the code for Thành Thành Công Tây Ninh JSC and BHS is the code for Biên Hòa Sugar JSC.

SBT has surged 51.5 per cent in the last two months and BHS has gained 30 per cent in the same period. BHS stocks closed unchanged on Wednesday at VNĐ21,100 (US$0.93) a share while SBT increased 0.7 per cent to settle at VNĐ38,450 each.

At the current price level, total market capitalisation of SBT after the merger will reach $950 million.

The merger will increase the chartered capital of Thành Thành Công Tây Ninh by more than VNĐ3 trillion ($133.3 million) to VNĐ5.57 trillion. The new company will have total assets of VNĐ14.67 trillion and total payable assets of VNĐ7.86 trillion.

Thành Thành Công Tây Ninh expects its combined revenue will reach VNĐ8.35 trillion following the merger and combined pre-tax profit will touch VNĐ674 billion.

Also in May, Thành Thành Công, the parent company of Thành Thành Công Tây Ninh Sugar JSC, spent over VNĐ1.33 trillion to acquire entire stake in the HAGL Sugar JSC from Hoàng Anh Gia Lai Group.