Bien Hoa Sugar JSC has announced its 300 million shares traded on the HCM Stock Exchange will be delisted to complete the merger with Thanh Thanh Cong Tay Ninh Sugar JSC. The company said in its statement on Monday that the shares were being delisted to conduct a share swap with Thanh Thanh Cong Tay Ninh Sugar JSC in accordance with the M&A agreement between the two companies.
Shares of Bien Hoa Sugar JSC will be delisted from the stock exchange on August 30 and the last trading day is August 29.
Shares of the two sugar producers have gained significantly since May on market speculation of a merger between the two largest companies in the sugar industry.
The two sides on June 7 signed a merger agreement to create the largest sugar company in Viet Nam with 30 per cent market share.
Under the agreement, Thanh Thanh Cong Tay Ninh Sugar JSC will swap its shares with more than 300 million shares of Bien Hoa Sugar JSC at the rate of 1:1.02, which means each share of Bien Hoa Sugar is equal to 1.02 shares of TTCS.
Shares of both companies are listed on the HCM Stock Exchange. SBT is the code for Thanh Thanh Cong Tay Ninh JSC and BHS is the code for Bien Hoa Sugar JSC.
SBT has surged 51.5 per cent in the last two months and BHS has gained 30 per cent in the same period. BHS stocks closed unchanged on Wednesday at VND21,100 (US$0.93) a share while SBT increased 0.7 per cent to settle at VND38,450 each.
At the current price level, total market capitalisation of SBT after the merger will reach $950 million.
The merger will increase the chartered capital of Thanh Thanh Cong Tay Ninh by more than VND3 trillion ($133.3 million) to VND5.57 trillion. The new company will have total assets of VND14.67 trillion and total payable assets of VND7.86 trillion.
Thanh Thanh Cong Tay Ninh expects its combined revenue will reach VND8.35 trillion following the merger and combined pre-tax profit will touch VND674 billion.
Also in May, Thanh Thanh Cong, the parent company of Thanh Thanh Cong Tay Ninh Sugar JSC, spent over VND1.33 trillion to acquire entire stake in the HAGL Sugar JSC from Hoang Anh Gia Lai Group.