Vinamilk gobbles up KSC to rename it Vietsugar

November 30, 2017 | 12:15
(0) user say
Vinamilk has just acquired a 65 per cent stake of Khanh Hoa Sugar JSC and renamed it Vietsugar.
Vietsugar is a part of material supply chain for Vinamilk

This company was established in 1989 with Dien Khanh sugarcane factory with the initial capacity of processing 100 tonnes of sugarcane per day. Subsequently, it was renamed Khanh Hoa Sugar JSC (KSC) in 1995.

On November 28, 2017, Vietnam Diary Products JSC (Vinamilk) launched Vietsugar after acquiring KSC to complete its materials supply chain.

On November 22 KSC tripled its charter capital, rising it from VND42.1 billion ($1.85 million) to VND120.3 billion ($5.3 million). Vinamilk holds 65 per cent of KSC’s share capital, equivalent to 7.82 million shares bought at VND127,878 ($5.62) per share. Accordingly, the company is valued at VND1.538 trillion ($67.6 million).

Vietsugar can now process 10,000 tonnes of sugarcane and refine 1,500 tonnes of raw sugar per day. This will rise to 15,000 tonnes of sugarcane and 2,000 tonnes of raw sugar per day.

Vietsugar products are processed directly from sugarcane by a new automated technology line. This production line was supplied by Honeywell Company from Singapore and aims to save energy and enhance production efficiency.

Additionally, the sugar sector is going to face many challenges after the ASEAN Trade in Goods Agreement (ATIGA) removes import duty from sugar imported from regional countries in 2018. Quotas will also be officially abolished early next year.

RELATED CONTENTS:
Phú Yên pilots solar-powered watering system for sugarcane farm
Fifteen firms win sugar import quotas
Sugary drinks may get unsavoury tax
Farm sector set for wave of mergers, acquisitions
Sugarcane sector needs new ideas
Sugar press mud fertiliser plant to be constructed in Tra Vinh
Biên Hòa Sugar JSC to be delisted from HOSE
TTC Group seeks to take over HAGL’s sugar business
Merger plans to create VN’s largest sugar company

By By Nguyen Huong

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional