The PAN Group’s agriculture business, PAN Farm JSC, has completed its public bid for nearly 11.5 million shares, an equivalent to 29.47 per cent in Sao Ta Foods JSC, lifting its ownership here to 34.17 per cent from 4.7 per cent. At the bidding price of VND23,000 (US$1) per share, PAN Farm has spent more than VND264 billion ($11.6 million) for the purchase. The transaction was finished on January 31 after two months of making the public bid offer.
The shares of Sao Ta Foods (FMC) has rallied nearly 7 per cent for the last four days, trading around VND27,000 per share on the HCM Stock Exchange.
In the filing to the State Securities Commission and HCM Stock Exchange on February 1, PAN Farm said the company currently holds more than 13.3 million shares of Sao Ta Foods, or 34.17 per cent of its capital, and becomes its major shareholder.
In addition to securing a long-term investment, through the takeover, PAN Farm aims to expand production this year, the company said.
PAN Farm, with a charter capital of VND1.22 trillion, focuses on farming solutions and plantation. Meanwhile, Sao Ta Foods is one of the three biggest shrimp exporters in Viet Nam.
Prior to this purchase, another subsidiary of PAN Group, Aquatex Ben Tre JSC, acquired a 20.1 per cent stake in Sao Ta Foods in November last year. Therefore, PAN Group currently holds 54.3 per cent interest in the shrimp producer, and its business results will be consolidated into PAN Group’s financial statements from this year.
Through a number of merger and acquisition (M&A) deals in agriculture and foodstuff sectors, PAN Group is taking over many leading companies in these industries, including confectionery Bibica, Long An Food Processing Export (Lafooco), Vinaseed, Southern Seed, Aquatex Ben Tre and now Sao Ta Foods.
In 2017, Sao Ta Foods reported a total revenue of VND3.3 trillion and a net profit of VND122 billion.