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Cotton firm in talks with foreign investors
Bach Tuyet Cotton Joint Stock Co., the third-biggest gainer on Vietnam’s main stock exchange Tuesday, may sell as much as 49 percent of its shares to foreign investors.
“We are in talks with some foreign companies who are interested in investing in Bach Tuyet,” Chief Executive Officer Ta Xuan Tho said in a telephone interview from Ho Chi Minh City. Tho declined to name companies.
Bach Tuyet shares rose VND400, or 4.2 percent, to close at VND5,000 on the Ho Chi Minh Stock Exchange Tuesday. It was the company’s highest closing since January 12.
Tho said the HCMC-based cotton-products maker resumed production last week after halting operations July 12 when a major shareholder objected to plans to raise VND82 billion (US$4.7 million) by selling shares to repay overdue debt.
The Ho Chi Minh City Health Department has announced plans to take a 30 percent stake in Bach Tuyet to become its biggest shareholder. The stake is now owned by the state-run Gia Dinh Textile & Garment Co., which previously objected to Bach Tuyet’s plan to sell shares and invest in hospitals, Tho said.
“It will make it a lot easier for us to carry on with some hospital projects we planned,” Tho said.
Almost 90 percent of Bach Tuyet’s earnings come from supplying medical cotton to hospitals, he said.
Bloomberg
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