Bến Tre Aquaproduct Import and Export JSC (ABT)’s managing board has approved the plan of purchasing 7.8 million shares, equal to a 20.1 per cent stake, of Sao Ta Foods JSC (FMC).

The decision was made after seafood exporter Hùng Vương Corp (HVG) agreed to sell all 21.128 million shares — equivalent to 54.28 per cent of Sao Ta Foods’ capital — for the purpose of streamlining its business in the context of pessimistic declining performance and heavy interest burden.

Sao Ta Foods is one of the most-effective subsidiaries under Hung Vuong Corp. The shrimp exporter reported the best-ever result with estimated pre-tax profit of VND125 billion in the fiscal year 2016-17, an increase of 25 per cent over the yearly target and up 60 per cent year-on-year.

If the transaction is successful, Sao Ta Foods will become an associate of Ben Tre Aquaproduct, focusing on shrimp processing and exporting.

Ben Tre Aquaproduct focuses on tra fish and oyster farming. Its performance is getting worse this year with the nine-month profit reaching just VND15.6 billion, a sharp decline compared to VND40 billion earned in 2016’s nine months. – VNS