January 29, 2010

Vietnamese seafood exporters to merge

Seafood processor An Giang Fisheries Import and Export Co (Agifish) is supporting a public offer by Hung Vuong Co (HV) to purchase 3.75 million of its shares, an amount equivalent to over 29% of the company.

Hung Vuong is a national leader in tra and basa exports and already owns a nearly 22% stake as a strategic partner in Agifish. Its January 4 offer is part of a plan to gain further control of its competitor.

Agifish Chairman Ngo Phuoc Hau said this combination will promote the two companies' mutual benefit.

Agifish exports mainly to Western Europe, the US and Australia, while Hung Vuong's main markets are Russia, Ukraine, Mexico and the East.

Hung Vuong's financial officer Phan Huynh said the company wants to capitalise on Agifish's established presence in the US market, and Agifish in return can take advantage of Hung Vuong's traditional markets in Mexico and Ukraine.

The companies already have a close business relationship - Hung Vuong provides feed materials to Agifish through its two fish feed facilities.

Under national law, any institution or individual holding a stake of 25% or over in a public company must make a public offer to buy shares to swell its holdings to 51% and more.

Huynh said Hung Vuong was awaiting approval from the State Securities. The company anticipates the deal to close in 30-60 days of receiving authorisation.

Hung Vuong's acquisition would be the first in Vietnam concluded through public offer on the stock exchange.