Vinafood 2 to conduct VND5 trillion IPO

January 04, 2018 | 21:43

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Southern Food Corporation (Vinafood 2) will conduct its initial public offering (IPO) at the initial price of VND10,100 ($0.44) per share within the next three months.

At the end of 2016, Vinafood 2’s accumulated loss stood at VND798 billion

Deputy Prime Minister Vuong Dinh Hue signed Decision No.2133/QD-TTg on December 29, 2017 approving the equitisation plan of Vinafood 2 (VNF2). The company will offer 500 million shares with the starting price of VND10,000, bringing the offering’s initial value to VND5 trillion ($220 million). The offer will include:

255 thousand shares (51 per cent of charter capital) owned by the state

114,831,000 shares (22.97 per cent) will be auctioned publicly

4,969,000 shares (0.99 per cent) will be sold to employees

200,000 shares (25 per cent) will be sold to the corporation’s trade union

125 million shares (25 per cent) will be sold to strategic investors

The agency representing state ownership in Vinafood 2 is the Ministry of Agriculture and Rural Development (MARD).

Thereby, the prime minister authorised MARD to make decisions and build criteria for selecting strategic investors according to the relevant regulations.

Deputy PM urges equitisation of Vinafood 2

Deputy Prime Minister Vuong Dinh Hue, has requested the Ministry of Agriculture and Rural Development (MARD) and the Ministry of Finance (MoF) to carry out the equitisation of Viet Nam Southern Food Corporation (Vinafood 2) in accordance with the approved scheme.

Government more determined to divest from Vinafood 2

The government will retain 51 per cent of Vietnam Southern Food Corporation Ltd. (Vinafood 2) after equitisation, a decrease from the earlier expected 65 per cent.

Government to retain 65% in Vinafood 2 after equitisation

The Viet Nam Southern Food Corporation (Vinafood 2) plans to equitise, selling a 35 per cent share to strategic investors and employees, Huynh The Nang, its general director, said.

Vinafood 2 flooded by debts

Vietnam Southern Food Corporation Limited (Vinafood 2), one of Vietnam’s two biggest food corporations, is facing the massive total debt of VND1 trillion ($46.6 million) due to the ineffective operation of subsidiaries.

By By Minh Vu

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