State Capital Investment Corporation (SCIC) plans to sell its 36.3 per cent stake or 44.2 million shares in Vietnam Vegetable Oils Industry Corporation (Vocarimex, UpCom: VOC) on the Hanoi Stock Exchange in November.
|SCIC is slated to sell its entire stake at Vocarimex next month |
With the initial price of VND22,690 (98 US cnts) apiece, SCIC is expected to collect VND1 trillion ($43.5 million).
Vocarimex was established in 1976. The corporation was equitised in 2011 and was transformed into a joint-stock company in 2014 with the initial charter capital of VND1.2 trillion ($52.17 million). The company began trading on the UPCoM in 2016.
VOC shares are being traded at the price of VND23,000 ($1) per share and have stayed almost entirely flat in the past two months, yet are up 147 per cent since the beginning of April.
The divestment of Vocarimex in the second half of 2020 is expected to help SCIC fulfil its yearly business targets.
Vietnam’s leading food company Kido Corporation is Vocarimex’s biggest shareholder, holding 51 per cent of the stakes. At the recent annual general meeting (AGM), Kido announced a plan to merge with its subsidiaries Kido Foods (KDF), Vocarimex, Tuong An Vegetable Oil (TAC), and Kido Nha Be.
So far, the merger plan of Kido Foods into Kido has been approved by shareholders at the AGM. Meanwhile, the merger plan with Tuong An was withdrawn before the AGM because it is entangled with the state capital in Vocarimex. Kido leaders expect that after SCIC’s divestment of Vocarimex, Tuong An will organise an extraordinary general meeting to discuss merger plans with Kido.
In 2020, Vocarimex plans to achieve VND2.19 trillion ($95.2 million) in revenue, up 14 per cent on-year and VND243 billion ($10.57 million) in pre-tax profit, matching last year’s result.
In the first nine months, Vocarimex expects its net revenue to reach VND1.91 trillion ($83 million), up 4.1 per cent over the same period last year. Meanwhile, its pre-tax profit is expected to reach VND181 billion ($7.87 million) an increase of 32.5 per cent compared to the third quarter of 2019 thanks to a 12.9 per cent decrease in operating costs.