Minh Phu sells 60 million shares for Mitsui

Mitsui promises to provide knowhow and technology to boost the management and operations of Minh Phu

Minh Phu Seafood JSC (MPC) on May 16 announced Resolution No.04/2019/NO-HDQT of its Board of Directors (BoD) approving the issuance of ordinary MPC shares to MPM Investments Pte., Ltd. at the unit price of VND50,630 ($2.2).

Therefore, upon the completion of this issuance, MPC will collect VND3.037 trillion ($132 million) in proceeds.

In addition, Le Van Quang, MPC’s chairman, said that the strategic partner, could buy shares from his family members, according to VnEconomy.

On May 15, Le Van Diep and Chu Van An, members of the BoD cum deputy directors of MPC, and Le Thi Minh Quy registered selling 10.2 million MPC shares to a strategic partner.

The specific volumes the three individuals registered to sell were 3.93 million, 2.22 million, and 4 million shares, respectively. These shares are equivalent to 7.3 per cent of the share volume in circulation. All three transactions are expected to be implemented from May 20 to June 20.

It is known that Le Thi Minh Quy is the daughter of chairman Le Van Quang and Chu Thi Binh, who is also a member of the BoD and deputy general director of MPC. Le Van Diep is Le Van Quang's younger brother and Chu Van An is Binh's brother.

If MPM successfully buys the MPC shares offered by Le Van Quang’s family members, it will become the biggest shareholder of MPC. MPM has been registered on February 19 this year, with registered address in the ASO building in Singapore.

MPM is a subsidiary of Mitsui & Co., Ltd., one of the largest and most prominent global trading and investment companies. Founded in Japan in 1947. On its website, Mitsui announced to acquire a 31.5 per cent equity interest in MPC.

Explaining the choice, Mitsui wrote that MPC owns two processing plants and shrimp farms with an area of 900 hectares in southern Vietnam. MPC has built a strong position by vertically integrating all stages from shrimp farming to processing and sales. MPC’s extensive range of products, including value-added products, are exported to around 50 countries, notably the US and Japan. The company accounts for approximately 20 per cent of Vietnam's total shrimp exports.

In 2013, Mitsui invested in Minh Phu Hau Giang JSC (MPHG), a processing plant affiliated with Minh Phu. Since then, Mitsui has contributed to optimising the management and operations of MPHG. By investing in the parent company, Mitsui will be able to apply the initiatives developed at MPHG to the entire Minh Phu Group and leverage its global sales networks to expand the Vietnamese company’s sales.

Mitsui will also help Minh Phu to achieve further growth through the application of digital technology, including AI in fisheries and processing plants, and the enhancement of the efficiency of its shrimp supply chain extending from farm to market.

Mitsui has identified nutrition a agriculture as a new growth area under its medium-term management plan. Global demand for sustainable proteins is expanding as the population grows and the middle class expands globally. Through this investment, Mitsui will continue its efforts to improve the productivity, stability, and sustainability of supply, while adding value to food products.

In addition, MPC’s BoD approved Resolution No.04b/2019/NQ-HDQT on purchasing nearly 26.7 million existing shares (31 per cent) at MPHG from Mitsui.

The total purchase value of the shares is VND871.8 billion ($37.9 million). MPHG is the biggest subsidiary of MPC with the charter capital of VND867 billion ($37.7 million).