Tael Two Partners Ltd, one of the two major foreign stakeholders of GTNFood Joint Stock Company, has registered to offload its entire holding in the Vietnamese food company. The deal will pave the way for Vinamilk to acquire a larger stake in the ownership of Moc Chau Milk.
The Singapore-based private equity fund registered to sell 55 million shares, equivalent to 22 per cent of GTNFoods, between May 10 and June 7 for divestment purpose.
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 GTNFoods with a tender price of VND13,000 (US$0.56) per share. Vinamilk is expected to spend about VND1.5 trillion ($64.5 million) on the deal.
If the deal went through, Vinamilk would increase its stake in GTNFoods to 49 per cent.
Shares of GTNFoods, coded GTN on the Ho Chi Minh Stock Exchange, soared 12.3 per cent in the last four trading sessions, pricing VND19,000 per share on Tuesday, up 46 per cent over the Vinamilk’s offered price.
Compared to the beginning of this year, value of GTN shares almost doubled. The jump was believed to be because Vinamilk showed interest in the company.
GTNFoods hold around 75 per cent in Vietnam Livestock Corporation (Vilico), which accounts for 51 per cent of Moc Chau Dairy Cow JSC, the largest dairy cow farm in the North.
The company also holds 95 per cent of Vietnam Tea Corporation’s capital and 35 per cent of LadoFoods – owner of the Dalat wine brand.
Vinamilk's public tender was not approved by GTNfoods management board after three out of six board members disagreed, including the GTNFoods chairman.
Meanwhile, three foreign funds agreed with Vinamilk’s offer. After the divestment of Tael Two Partner, other two foreign investors may also offload their stakes in GTNFoods.
Tael Two Partners and PENM IV Germany GmbH & Co.KG are the two biggest foreign investors, holding respectively 22 per cent and 6 per cent.
For domestic stakeholders, West Ocean Invest JSC is GTNFoods’ largest shareholder with 28 per cent capital. Ho Chi Minh Securities Corp owns 8.03 per cent and BZZ Investment JSC holds 7 per cent.
Last weekend, the company also sought its shareholders' opinions for the amendments of the company's charter relating to the election of board members and rejection of proposals of shareholders and groups of shareholders. This move is believed to prevent the acquisition efforts from outside.