Moc Chau dairy cow farm (Source: GTNFoods) Hanoi (VNS/VNA) - Tael Two Partners Ltd, one of the two major foreignstakeholders of GTNFood Joint Stock Company, has registered to offload itsentire holding in the Vietnamese food company.
The deal will pave the way for Vinamilk to acquire a larger stake in theownership of Moc Chau Milk.
The Singapore-based private equity fund registered to sell 55 million shares,equivalent to 22 percent of GTNFoods, between May 10 and June 7 for divestmentpurpose.
The mode of transaction is to register to sell by the tender offer of Vinamilk,the fund said in its filing to the Ho Chi Minh Stock Exchange.
In March, Vinamilk offered to purchase more than 116 million shares of GTNFoodswith a tender price of 13,000 VND (0.56 USD) per share. Vinamilk is expected tospend about 1.5 trillion VND (64.5 million USD) on the deal.
If the deal went through, Vinamilk would increase its stake in GTNFoods to 49 percent.
Shares of GTNFoods, coded GTN on the Ho Chi Minh Stock Exchange, soared 12.3 percentin the last four trading sessions, pricing 19,000 VND per share on May 7, up 46percent over the Vinamilk’s offered price.
Compared to the beginning of this year, value of GTN shares almost doubled. Thejump was believed to be because Vinamilk showed interest in the company.
GTNFoods hold around 75 percent in Vietnam Livestock Corporation (Vilico),which accounts for 51 percent of Moc Chau Dairy Cow JSC, the largest dairy cowfarm in the North.
The company also holds 95 percent of Vietnam Tea Corporation’s capital and 35 percentof LadoFoods – owner of the Dalat wine brand.
Vinamilk's public tender was not approved by GTNfoods management board afterthree out of six board members disagreed, including the GTNFoods chairman.
Meanwhile, three foreign funds agreed with Vinamilk’s offer. After thedivestment of Tael Two Partner, other two foreign investors may also offloadtheir stakes in GTNFoods.
Tael Two Partners and PENM IV Germany GmbH & Co.KG are the two biggestforeign investors, holding respectively 22 percent and 6 percent.
For domestic stakeholders, West Ocean Invest JSC is GTNFoods’ largestshareholder with 28 percent capital. Ho Chi Minh Securities Corp owns 8.03 percentand BZZ Investment JSC holds 7 percent.
Last weekend, the company also sought its shareholders' opinions for theamendments of the company's charter relating to the election of board membersand rejection of proposals of shareholders and groups of shareholders. Thismove is believed to prevent the acquisition efforts from outside. — VNS/VNA
VNA
