GTN to buy stakes in State enterprises Vinatea, Vilico

Thursday, Aug 27, 2015 19:11

A tea field in the northern region of Viet Nam. The Vietnam National Tea Corporation is expected to sell 75 per cent of stake to Thong Nhat Production and Investment Joint Stock Company. — Photo

HA NOI (Biz Hub) — Thong Nhat Production and Investment Joint Stock Company (GTN) plans to acquire a 75 per cent of stake in the State-owned Vietnam National Tea Corporation, or Vinatea.

According to a resolution approved at GTN's annual shareholders meeting in May, the company will buy 27.75 million shares in all, more than 23.58 million shares directly from Vinatea as a strategic investor, and the rest in the market.

GTN shareholders also approved a fund of VND350 billion (US$15.57 million) for acquiring State-owned enterprises to develop its business which is focuses on areas like bamboo manufacturing, construction, infrastructure, mining, building materials, plastics, agricultural products, and foodstuffs.

Under an equitisation plan approved by the Government in June, Vinatea will be fully sold. The strategic investor will be allowed to buy 63.74 per cent of the shares and Vinatea workers, nearly 4.4 per cent, while the rest will be sold to the public.

Vinatea plans an initial public offering (IPO) on September 16 at an openning price of VND10,000 each.

The company, which produces and trades various teas and leases office space, is expected to have a registered capital of VND370 billion ($16.46 million) post-IPO.

GTN has also plans to buy a 12.12 per cent stake, corresponding to 7.65 million shares, in the Vietnam Livestock Corporation (Vilico). — VNS

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