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VietNamNews

Foreign partner to buy seafood processor

Update: December, 11/2012 - 09:56

 

Seafood products at Go Dang seafood processor are checked for parasites. The company recently sold six million shares to Panga Holdco Pte Ltd, sparking talk of a sell-off to its foreign partner. — VNA/VNS Photo Pham Hau
HA NOI (VNS)— Investors began to suspect seafood processor Go Dang (AGD) would be sold to its foreign partner after the company sold six million shares to Panga Holdco Pte Ltd and delisted its shares.

As Viet Nam News reported last Saturday, the company's Singaporean partner had increased its stake in the Vietnamese processor to nearly 49 per cent - the legal limit for foreign ownership in domestic businesses. However, when Go Dang finishes delisting its shares on the HCM City Stock Exchange, it will no longer be bound by the regulation.

While other enterprises faced difficulties raising funds, Go Dang could easily issue 6 million shares at VND63,000 (US$3), 4.2 per cent higher than its closing price yesterday.

Notably, the price rose from VND50,000 ($2.3) when the company announced its delisting to the current VND60,500 ($2.9), despite the market downturn.

Nguyen Tung Duong, Go Dang's deputy general director, declined to release further information on the purchase.

Meanwhile, on December 5, two board members of the company resigned, replaced by American David Martin Ireland and Vietnamese Hoang Long, both residents of Singapore.

On November 30, Panga Holdco became Go Dang's major shareholder with a 23.3 per cent stake. Prior to that, the Singaporean investor did not hold a single AGD share.

Back in October, Go Dang's chairman Nguyen Van Dao said the company planned to delist as it had not raised as much capital as it expected to. However, despite having received $26.5 million from Panga Holdco's purchase, Go Dang is continuing with the planned delisting.

While other firms delisted due to making losses, the seafood processor earned a profit of VND70 billion ($3.3 million) during the first nine months of this year.

Duong also estimated the company's export turnover at $40 million and this year's profit at VND120 billion ($5.7 million). — VNS

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