Minh Phu Seafood shrimp processing. (Photo: VASEP)
Minh Phu to sell 50 pc stake to further develop
Friday, January 30, 2015, 23:50 (GMT + 9)
Major shrimp producer Minh Phu Seafood Corp is planning to sell 50 per cent participation to acquire capital for expansion investment.
The Vietnamese shrimp exporter had to withdraw from Ho Chi Minh City Stock Exchange (HOSE), as under current regulations, foreign investors can hold a maximum of 49 per cent of the shares of listed companies.
Minh Phu sold over 47,713 tonnes of shrimp in 2014, for a total of USD 730.4 million, figures represent increases of 22.9 per cent in volume and 40.58 per cent in value compared to 2013, VASEP reported.
Among the more than 60 countries in which it sells its products, the United States is its largest market, with more than a third of last year’s exports, followed by Japan and Europe.
According to Bloomberg, Minh Phu expects its profits for this year to increase by 55 per cent to over VND 1,416 billion (USD 66 million), and turnover to reach USD 1 billion, mainly due to exports.
These predictions make the company appealing to foreign investors from US, Japan and Canada, which have already expressed their interest.
Currently Mitsui & Co. holds a 31 per cent participation in Minh Phu Hau Giang, a subsidiary of Minh Phu Group, whereas Red River Holding Fund and the Vietnam Investment Fund have 9.47 per cent and 7.38 per cent ownership respectively.
The company’s CEO, Le Van Quang, told Bloomberg, “We’re looking for strategic foreign investors to help maximize our advantages and potential as our goal is to become a global shrimp company by 2020.”
Among Minh Phu main customers are Costco Wholesale Corp. and Wal-Mart Stores, which are supplied by a distribution unit in California.
The Vietnamese exporter plans to build shrimp processing companies and distribution units in India, Indonesia and the Philippines in the next five years. It also plans to build a 40,000-tonne shrimp processing plant in Ca Mau province this year, and another with the same capacity in Hau Giang province over the next three years.