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Criteria relaxed for Vinafood 2’s strategic investor selection
The Ministry of Agriculture and Rural Development has approved a new set of criteria to select strategic investors for the Viet Nam Southern Food Corporation (Vinafood 2).
These requirements are more relaxed than those proposed by the corporation earlier.
Specifically, strategic investors must have a minimum charter capital of VND2.5 trillion (US$110 million) in 2016 and record positive after-tax profits in three consecutive years from 2014-16, with no accumulated losses until December 31, 2016.
The earlier proposal by Vinafood 2 stipulated strategic investors to have total assets worth at least VND10 trillion by December 31, 2015, as stated in their audited financial report, a minimum charter capital of VND3.5 trillion and positive after-tax profits in three consecutive years, with no accumulated losses by the end of 2015. Besides this, the corporation also set some specific criteria on profits that strategic investors must meet.
Nguyen Ngoc Nam, Vinafood 2 acting general director, said the reduction in the charter capital as well as the removal of minimum total assets and profit ratios in the criteria list would help invite potential investors.
He said food and seafood processing and production would continue to be the core businesses of Vinafood 2 after equitisation.
Vinafood 2’s initial public offering (IPO) is scheduled to take place on March 14.
The corporation’s equitisation plan was approved on December 29, 2017, by Prime Minister Nguyen Xuan Phuc. After the equitisation, Vinafood 2’s charter capital is estimated at VND5 trillion ($220 million), of which the State will hold 255 million shares, representing 51 per cent, and strategic investors will hold 125 million shares or 25 per cent.
The number of shares that will be offered in the IPO is over 114.8 million, representing 22.97 per cent of the corporation’s charter capital. The starting price of the IPO is VND10,100 for each share.
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