Viet Nam News
HÀ NỘI – Four foreign investors are looking at a private offering of 75.72 million shares in Minh Phú Seafood Corporation this year.
The companies are reported to be from Japan, South Korea, the United States and Japan.
Minh Phú’s chairman Lê Văn Quang disclosed this information at a shareholder meeting on Tuesday.
Last year, Minh Phú approved a plan to sell 75.72 million shares to new investors to raise capital to expand shrimp production and supplement working capital.
Its charter capital is expected to increase from VNĐ1.4 trillion to nearly VNĐ2.16 trillion (US$92.7 million) after the share sale.
Quang said these shares could be sold to one or all four investors.
The selling price will not be lower than the book value recorded in the company’s latest financial statement.
Quang said investors had offered that price but the company was hoping for a better deal.
“The price will be much higher than the trading price on the stock market. The first criteria for selecting a strategic investor is capital,” he said.
In a shareholders’ meeting in November last year, Quang said investors must pay 20 per cent more than market price for the shares. The value of the deal was expected at about $230-250 million at that time.
The company is seeking long-term investors with strong financial capacity to help it achieve a sales boost of 25 per cent. According to Quang, at this rate, the company could control global shrimp prices and ensure stable profits.
Shares in Minh Phú Seafood Corporation (MPC) are trading on the Unlisted Public Company Market (UPCoM) at around VNĐ46,000 ($1.97). The company is planning to shift its listing to the Hồ Chí Minh Stock Exchange this year.
Cash dividend in Q1
The company plans to pay a cash dividend of 50-70 per cent, equivalent to VNĐ5,000-7,000 per share, in the first quarter of this year.
In 2018, Minh Phú recorded a net profit of VNĐ1.03 trillion ($44.2 million), up 44 per cent against the previous year.
The company forecasts higher output this year in the domestic market amid difficulties in rival markets such as India. It has targeted total production of 77,400 tonnes, expecting to bring in $850 million turnover for the company in 2019.
The pre-tax profit goal is VNĐ2.3 trillion, of which exports are projected to generate VNĐ2 trillion. – VNS