Seafood processor Hung Vuong (HVG) to sell 5 million treasury shares

Hung Vuong Corporation (HVG), one of the biggest seafood processors in Viet Nam, plans to sell five million treasury shares to raise capital to supplement business activities and enhance operational efficiency.

Transactions will be conducted via order matching or an agreement method from December 11 this year to January 9 next year.

The selling price will not be lower than VND4 per share (US$0.2). If the sale is successful, the company expects to collect at least VND20 billion ($860,000).

Hung Vuong bought these treasury shares during May-July 2016 with the average purchase price of VND10,218 per share, equivalent to a total value of VND51 billion. With this price, the company might have lost VND31 billion after more than three years of holding.

Hung Vuong stocks (HVG) suddenly increased sharply from mid-October this year, from VND2,720 per share in October 15 to finish Wednesday at VND8,500 per share.

Facing many difficulties, HVG has had to sell many big assets. In 2018, the company had to liquidate its real estate properties and dissolve its real estate arm An Lac Real Estate JSCin which it held 76 per cent of the capital.

It also divested its entire ownership of 54 per cent capital in Sao Ta Foods, cut its stake in Viet Thang Aquafeed from 90.36 per cent to 33.16 per cent and sold Tan Tao Cold Storage 2.

Despite the sale of assets, the company is still in financial trouble, having received disappointing results from the 14th administrative review (POR14) for antidumping duty in the US with a tax of up to $3.87 per kg, compared to zero tax in the preliminary results.

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