September 18, 2012

In order to facilitate its closed production and business chain, Hung Vuong Corporation (HVG) has bid for an additional three million shares of Viet Thang Feed Company (VTF).

Hung Vuong has recently proposed buying three million VTF shares for VND26,100 (US$1.25) each to raise its stake in the feed producer to 28.54%.

Duong Ngoc Minh, Chairman of HVG, said that holding a majority stake in VTF is part of HVG's strategy approved at the recent shareholders meeting.

Hung Vuong currently has a total seafood farming area of 500 hectares, including of its subsidiary An Giang Fisheries Import & Export and in farming cooperation with Ben Tre Forestry and Aquaproduct Import Export Company. Its daily fish processing capacity is 1,700 tonnes and the enterprise can meet 80% of its material demand.

Minh said the VTF share acquisition will help Hung Vuong speed up the process of developing a closed production process from feed production to farming, processing and export of fish fillets.

As input material costs for feed production have increased, acquiring a feed firm will help reduce impacts on prices of finished products and raise profitability, Minh added.