The facility of Mộc Châu Milk in Sơn La Province's Mộc Châu District. — Photo gtnfoods.com.vn

HÀ NỘI — Mộc Châu Dairy Cattle Breeding Joint Stock Company (Mộc Châu Milk) plans to issue 43.2 million shares to raise charter capital by 65 per cent to VNĐ1.1 trillion (US$47.4 million).

Mộc Châu Milk currently has a charter capital of VNĐ668 million.

Of the total shares, some 39.2 million will be sold to the strategic investors for VNĐ30,000 per share, valuing the deal at VNĐ1.17 trillion.

The strategic investors are the Vietnam Dairy Products JSC (Vinamilk) and GTNFoods JSC. The shares cannot be sold for one year from the issuance date.

The dairy firm, based in Sơn La Province’s Mộc Châu District, will issue 3.34 million shares to existing shareholders at a 100:5 ratio.

Shareholders will have the option to buy five new shares for every 100 shares they own at VNĐ20,000 per share.

Mộc Châu Milk expects to earn VNĐ67 billion from the share issuance. The leftover shares will be sold to the strategic investors.

In addition, the northern dairy producer plans to issue 668,000 optional ESOP shares to employees at VNĐ10,000 per share to earn VNĐ6.7 billion.

The ESOP shares will be unavailable for trading in one year.

Total revenue of the share issuances is estimated at VNĐ1.25 trillion. Plus the remaining cash, Mộc Châu Milk plans to spend VNĐ1.6 trillion on developing a new cattle farm with a capacity of 4,000 cows, upgrading the existing cattle farm’s capacity to 2,000 cows, and buying new liquid milk production line and building a new factory.

The company will also remove some business divisions from the registration, including veterinary, retail, road transportation, material wholesale, house construction and tourism to pave the way to raise foreign capital limit to 100 per cent.

Mộc Châu Milk will list its shares on the Hồ Chí Minh Stock Exchange in nine months. — VNS