GTN Foods to merge with Moc Chau Milk parent
GTN Foods to merge with Moc Chau Milk parent
GTNFoods wants to merge with its subsidiary, husbandry company Vilico, and delist.
A staff checks products at a factory of Moc Chau Milk. Photo courtesy of Moc Chau Milk.
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The company, itself a subsidiary of dairy giant Vinamilk, is seeking shareholders’ approval for the merger. It owns a 74.49 percent stake in the Vietnam Livestock Corporation, as Vilico is formally known.
Vilico, which owns Moc Chau Milk, is expected to become a major player in the husbandry and meat industry after the merger.
It will issue new shares to swap with 250 million GTN shares, which are currently trading on the Ho Chi Minh City Stock Exchange at VND26,600 ($1.15).
The share swap will be completed within three months of getting approval from the State Securities Commission of Vietnam.
The merger is expected to be completed in August.
GTNFoods became a subsidiary of Vinamilk in 2019 as the dairy giant sought to acquire Moc Chau Milk, whose products are popular in northern Vietnam.
