HCMC - The Ministry of Agriculture and Rural Development has sent the Prime Minister a plan to equitize the parent firm of Vietnam Southern Food Corporation (Vinafood 2), a Vietnam News Agency report said.
Under the plan, the enterprise would sell State shares and at the same time issue nearly 16.5 million shares worth nearly VND165 billion to raise its chartered capital to VND5 trillion (around USD224 million).
The company’s chartered capital of VND5 trillion is equivalent to 500 million shares with the face value of VND10,000 per share. The State would hold a 65% stake, or VND3.25 trillion in the enterprise, a strategic investor would own 25% (VND1.25 trillion), 8.95% would be sold to domestic and foreign buyers, and the remainder to staff and the trade union of the corporation.
Vinafood 2 said it has selected a strategic investor. In case, the enterprise cannot sell out shares, it will propose increasing the State stake after it goes public and reducing the Stake holding later.
At present, the Government is weighing a scheme to establish an agency responsible for managing State capital in State-owned enterprises (SOEs) and other firms. When the agency comes into existence, capital ownership rights held by ministries and local governments will be abolished to allow them to focus on State management affairs only.
The corporate value of the parent company of Vinafood 2 had been determined at VND14.28 trillion and the State ownership had been VND4.98 trillion as of March 2015. The value excluded losses of the company in previous years.
Huynh The Nang, general director of Vinafood 2, was quoted by the Vietnam News Agency as saying that overdue debts would account for VND600 billion of the planned chartered capital of VND5 trillion.
After years of losses, the parent company of Vinafood 2 posted profit of almost VND156 billion last year. In the first half of this year, Vinafood 2 reported profit of more than VND100 billion.