Singaporean firm to buy stake in local food processor

Singaporean firm to buy stake in local food processor

Food processor Hung Vuong (HVG) announced yesterday that it would sell up to 30 million shares to a foreign shareholder next year.

According to the company's chairman, Duong Ngoc Minh, the shares will be sold to a Singapore supermarket operator.

"We aim to expand business into the Singapore market, we are not short of money," Minh said.

Hung Vuong plans to divide the issuance into two phases. The first is expected to be deployed prior to June 30 next year, with a maximum volume of 20 million shares, while the second phase, with up to 10 million shares, will be transferred before December 31, 2014.

The price of the share sale will be negotiated, but will not be less than VND28,000 (US$1.3) per share.

In addition, company officials will soon travel to the US to sign a memorandum to sell products in 16 markets in the country. Reportedly, annual sales of these 16 markets are expected to reach some $700 million, with Vietnamese commodities accounting for 30-40 per cent of sales.

Hung Vuong hopes to invest between 30-51 per cent ownership in these markets, and find business in up to 50 more.

The US market accounts for 25 per cent of Hung Vuong's export value. Meanwhile, the company is also seeking opportunities in the Indonesian market.

With this plan, Hung Vuong aims to achieve a VND20 trillion ($943.3 million) turnover in 2015.

For this year, Minh said his company had earned nearly VND10 trillion ($471.65 million) in revenue, up 50 per cent over the same period last year and potentially completing the year's target of VND12 trillion ($566 million).

However, the profit target of VND800 billion ($37.7 million) will not be reached, he said.

Also, Minh promised to pay dividends before the Lunar Tet holiday.

vietnamnews