The company sold all of the 114.83 million shares, equivalent to 22.97% stake on offer with the average successful bidding price of VND10,101 (US$0.44), according to the Ho Chi Minh Stock Exchange.
Vinafood II specializes in trade, food import and export, processed food, agricultural products, and storage.
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Currently, Vinafood II's charter capital is VND5 trillion (US$220.51 million), equivalent to 500 million shares with unit value of VND10,100 (US$0.44). Under the current plan, the government holds 255 million shares, representing 51% of its charter capital. The Ministry of Agriculture and Rural Development will represent state ownership in the company after the equitization.
Vinafood II expects to offload a further 125 million shares to strategic investors, representing a quarter of Vinafood II's charter capital. In late February, T&T Group became the sole investor registering to be strategic investor of Vinafood II. Consequently, the group is expected to part with VND1.2 trillion (US$52.8 million) for this deal.
Based on a report released by Vinafood II, the company has been facing difficulties in business activities of late. Specifically, revenue in 2015 was recorded at VND22.7 trillion (US$1 billion), which is lower than the 2016 revenue of VND26.3 trillion (US$1.1 billion).
Also in 2015, Vinafood II reported a loss of VND9 billion (US$396.000), taking the accumulated losses to VND1.06 trillion (US$46 million), while in 2013 and 2014 the company suffered losses of VND268 billion (US$11.8 million) and VND907 billion (US$39 million), respectively.
Vinafood II set the objective of reaching VND11.9 trillion (US$524.8 million) in revenue and VND118 billion (US$5.2) in after-tax profit, respectively, after the equitization.
Vinafood II specializes in trade, food import and export, processed food, agricultural products, and storage. The company currently owns a distribution system connecting the southern provinces of Vietnam.
Vietnam is the world’s third-largest rice exporter. The country is projected to export 6.5 million tonnes of rice this year, up 12% from last year.
