Vietnamese agriculture and food company PAN Group JSC (PAN) has sold 13.4 million shares, equivalent to a 10 per cent stake, to Japanese Sojitz Corporation, the Vietnamese company announced on Tuesday. At a price of VND61,000 (US$2.62) per share, PAN Group has collected VND817.4 billion ($35 million) from the share sale at a premium of 4.3 per cent to Tuesday’s close of VND58,500.
After the transaction, PAN Group’s charter capital has increased from VND1.2 trillion to nearly VND1.34 trillion.
Early this month, the company’s board approved the plan of offering a maximum of 11 per cent to the Japanese investor at a price of no less than VND55,000 per share.
The funds raised from the sale are expected to help the company carry out its merger and acquisition (M&A) projects. More importantly, with Sojitz being its strategic stakeholder, PAN will have more opportunities to expand its products to overseas markets.
Founded in 2003, Sojitz consists of about 400 subsidiaries and affiliates operating in Japan and throughout the world. It is engaged in a wide range of businesses globally, including manufacturing and trading products and services in various sectors including automobiles, plants, energy, chemicals, foodstuff and agriculture.
Sojitz would share its Japanese technological expertise and customer network as a general trading company, adding to PAN’s existing customer base and local networks, the Japanese company said in a press release.
As part of the new alliance, Sojitz and PAN would also establish a collaboration promotion committee to strengthen the ties between them, it said.
Early this year, it also acquired 20 per cent stake in Rang Dong Long An Plastic JSC and 95 per cent equity in Saigon Paper JSC.
PAN Group, formed in 1998, has been expanding in recent years through M&As. Its current businesses covers seed and cultivation, confectionery and FMCG packaged food products, cashew nut and aquatic product.
The company’s profits have steadily increased since 2014, reaching nearly VND503 billion in 2017, up 49.5 per cent against 2016. Ending June this year, it recorded consolidated sales of VND3.55 trillion and net profit of VND204.7 billion, up 136 per cent in revenue and 66 per cent in profit compared to the same period last year.
PAN Group has increased its ownership limit for foreign investors to 100 per cent. Its current major shareholders include The Asian Entrepreneur Legacy (TAEL) Partners (20.7 per cent), Saigon Securities Inc (13.7 per cent), and NDH Invest (10.8 per cent).