Agifish and Hung Voung are top pangasius exporters and already have a close business relationship. (Photo: Stock File)

Seafood exporters merge to swell market

Seafood processor An Giang Fisheries Import and Export Co (Agifish) is supporting a public offer by Hung Vuong Co (HV) to purchase 3.75 million of its shares on the HCM City Stock Exchange, an amount equivalent to over 29 per cent of the company.

HV is a national leader in tra and basa exports and already owns a nearly 22 per cent stake as a strategic partner in Agifish. Its 4 January offer is part of a plan to gain further control of its competitor.

Agifish Chairman Ngo Phuoc Hau said he was not shocked by the public offer.

"The two companies are top local pangasius exporters and this combination will promote our mutual benefit," Ngo stated, VNN reports.

While Agifish exports mainly to Western Europe, the US and Australia, Hung Vuong’s main markets are Russia, Ukraine, Mexico and the East.

"Agifish has the advantage of a long-established presence in the US market, which our company wants to exploit," said Hung Vuong’s Financial Officer Phan Huynh. "In return, Agifish can take advantage of our traditional markets in Mexico and Ukraine."

The companies already have a close business relationship: Hung Vuong provides feed materials to Agifish through its two fish feed facilities.

Under national law, any institution or individual holding a stake of 25 per cent or over in a public company must make a public offer to buy shares to swell its holdings to 51 per cent and more.

Huynh elaborated that Hung Vuong had been awaiting approval from the State Securities. The company anticipates completing the acquisition of shares within 30-60 days of receiving authorization.

The original price was VND 36,000 (USD 2) per share, Huynh said, but would be adjusted depending on fluctuations in the market. Agifish shares closed on Tuesday at VND 35,000 on the HCM City Stock Exchange.

Agifish’s export value was almost USD 60 million in 2009 and its net profit VND 14.3 billion (USD 760,638). Hung Vuong’s was approximately USD 180 million in 2009and its net profit VND 330 billion (USD 17.6 million).

HV shares ended on Tuesday at VND 52,500.

Hung Vuong’s acquisition would be the first in Vietnam concluded through public offer on the stock exchange.

Related articles:

- Leading pangasius exporter to enter HCM Stock Exchange
- Seafood exporters aim for US market

By Natalia Real
[email protected]
www.fis.com

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