|Bến Tre Aquaproduct Import and Export JSC (ABT) will likely purchase a 20.1 per cent stake in shrimp exporter Sao Ta Foods. — Photo paleoleap.com|Viet Nam News
HÀ NỘI – Bến Tre Aquaproduct Import and Export JSC (ABT)’s managing board has approved the plan of purchasing 7.8 million shares, equal to a 20.1 per cent stake, of Sao Ta Foods JSC (FMC).
The decision was made after seafood exporter Hùng Vương Corp (HVG) agreed to sell all 21.128 million shares — equivalent to 54.28 per cent of Sao Ta Foods’ capital — for the purpose of streamlining its business in the context of declining performance and heavy interest burden.
Sao Ta Foods is one of the most-effective subsidiaries under Hùng Vương Corp. The shrimp exporter reported the best-ever result with estimated pre-tax profit of VNĐ125 billion in the fiscal year 2016-17, an increase of 25 per cent over the yearly target and up 60 per cent year-on-year.
If the transaction is successful, Sao Ta Foods will become an associate of Bến Tre Aquaproduct, focusing on shrimp processing and exporting.
Bến Tre Aquaproduct focuses on tra fish and oyster farming. Its performance is getting worse this year with the nine-month profit reaching just VNĐ15.6 billion, a sharp decline compared to VNĐ40 billion earned in 2016’s nine months. – VNS