GTNFoods buys 29.5 million Moc Chau Milk shares
GTNFoods buys 29.5 million Moc Chau Milk shares
GTNFoods, an arm of milk giant Vinamilk, will buy four-fifths of the shares Moc Chau Milk is putting on sale for strategic investors.
Moc Chau Milk is selling about 40 million shares to Vinamlik and its subsidiary GTNFoods JSC
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With the transaction value of VND30,000 ($1.30) per share, the purchase costs VND884 billion ($38.43 million). The remaining 9.7 million shares are offered for Vinamilk.
Previously, shareholders of Moc Chau Milk approved the plan to sell 43.2 million shares to existing shareholders and strategic investors (namely Vinamilk and GTNFoods). The company expected that the sale will increase its charter capital to VND1.1 trillion ($47.83 million) from the current VND668 billion ($29 million).
The purpose of the purchase is to mobilise money to invest in a new project, including developing a milk cow farm (4,000 units) in collaboration with eco-tourism, a dairy production plant, and upgrading the company's existing milk cow farm.
Moc Chau Milk wants to increase the foreign ownership ratio to 100 per cent while simultaneously listing its shares on the Ho Chi Minh City Stock Exchange (HSX).
According to the latest business report, the company acquired VND106 billion ($4.6 million) in after-tax profit, up 41 per cent on-year.
The purchase occurs just after GTNFoods JSC reported a slight increase in revenue to VND633 billion ($27.5 million) in the first quarter of this year.
GTNFoods' sales costs reduced sharply, so the gross profit margin has improved significantly to 26.3 per cent from 16.8 per cent, while gross profit gained VND166.7 billion ($7.25 million), increasing by 59 per cent on-year. The revenue from financial activities has doubled to VND30.8 billion ($1.34 million), thanks to the interest on deposits.
In 2020, GTNFoods plans to reach VND2.909 trillion ($126.5 million) in revenue, down 2 per cent on-year, but after-tax profit will have to rise by 662 per cent on-year to VND99 billion ($4.3 million). Thus, the first quarter has already advanced 22 per cent towards the revenue target and 40.4 per cent towards the profit target of the full year.
