The PAN Group to press on with Bibica and VFC acquisitions
The PAN Group to press on with Bibica and VFC acquisitions
The PAN Group will purchase more stakes in Bibica and increase its ownership in Vietnam Fumigation JSC (VFC) to over 50 per cent to complete its value chain in the agricultural segment.
The PAN Group rush in acquiring Bibica and VFC
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The PAN Group announced these goals on the occasion of publishing the group's financial statement for the first quarter this year. However, the company had yet to specify the timeline for this plan.
At present, The PAN Group holds 50 per cent in Bibica, with long-term designs to buy an additional 49.93 per cent. The group says that Bibica is an important piece in its 3F (farm – food – family) strategy to penetrate deeper into the food market.
Previously, in December 2020 Lotte Corporation began divesting its entire holding in Bibica. The Pan Group was planning on buying the entire stake, pushing its ownership to 100 per cent. However, while the divestment has taken place, for undisclosed reasons, The PAN Group's ambitions were not realised.
Regarding the deal with VFC, in November 2020, The PAN Group bought 2.15 million of the 4.8 million shares it offered to purchase. After the deal, the group holds 15.3 million shares, equaling 47.9 per cent of VFC’s charter capital, less than its intention of 56.25 per cent.
After The PAN Group was restructured into a company investing in agriculture in 2014, many strong brands in the agriculture and food processing industry came under its control. It currently holds 80.11 per cent in Vinaseed, 78.33 per cent in Aquatex Ben Tre, 63.79 per cent in Fimex VN, 50.07 per cent in Bibica, and 80.52 per cent in Lafooco.
Through Vietnam National Seed Company (NSC), the group has invested in a modern seed factory in the northern province of Ha Nam and is also considering the production of flower and vegetable varieties. Since last November, the group has been pouring capital into VFC, a 45-year-old agro-pharmaceutical company. Earlier in 2018, its raised the ownership rate in VFC to 41.88 per cent.
According to group chairman Nguyen Duy Hung, The PAN Group will continue looking for opportunities from its member companies to enter every segment of the agricultural and food sectors, as well as to develop organic products in member companies.
According to its first-quarter financial statement, The PAN Group acquired VND1.68 trillion ($73.04 million) in consolidated net revenue, and VND50 billion ($2.17 million) in after-tax profit, signifying increases of 31 and 75 per cent on-year. Its after-tax profit was VND22.4 billion ($973,913), up 58 per cent on-year.
