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Pan Pacific stitches up tender for largest stake in Vinaseed
Pan Pacific Corporation (PAN) announced it has become Viet Nam National Seed Corporation's (NSC) biggest shareholder after completing the tender offer for its shares.
According to its filing on the HCM City Stock Exchange yesterday, Pan Pacific has bought 4.63 million shares of Vinaseed, lower than the total 6.23 million shares it registered while buying.
PAN's total holdings in the seed firm increased from 2.47 million shares to nearly 8.14 million shares, equivalent to 53.2 per cent of the firm's stakes that makes NSC a PAN subsidiary.
The company could spend over VND352 billion (US$17 million) to own NSC shares as in March, PAN offered to buy their shares at a price of VND76,100 (US$3.61) per share from May 30 to July 15.
Sellers included Sai Gon Securities Inc (SSI) who sold out all its holdings of over 2.42 million shares in July.
NSC shares fell 0.7 per cent to close yesterday's session at VND74,500 ($3.53) a share while PAN shares tumbled 3.1 per cent to end at VND47,500 ($2.25) each.
The acquisition of Vinaseed has shown PAN's investment strategy to expand business in the agricultural sector in which Vinaseed is a leading company in the field of plant varieties.
NSC is a stable performer with profits rising steadily from 2009 to 2013. It estimates a profit of VND59 billion ($3 million) in the first half of this year, equivalent to 51 per cent of its yearly profit target and a rise of 9 per cent against the same period last year.
Apart from Vinaseed, Pan Pacific owns 62.4 per cent stake in Ben Tre Forestry and Aquaproduct Import and Export Co (ABT), and 23 per cent in Long An Food Processing Export Co (LAF).
PAN is operating in administrative and support services with 10 business lines, including agricultural and seafood production, home care services and industrial solid and liquids apart from gas waste treatment services and high-rise building and apartment management services.
Pan Pacific incurred losses of more than VND2 billion ($95,000) last year and is under warning status by the HCM Stock Exchange. Its first-half net profit is projected at VND22.5 billion ($1 million), six times the same period last year.
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