PAN mobilized more than 1,500 billion VND to acquire many companies

The Board of Directors of PAN Group has just approved a plan to issue shares to increase share capital from equity sources and offer additional shares to existing shareholders. In which, this enterprise issued nearly 83.6 million shares and offered to sell more than 104.4 million shares.

PAN is expected to collect more than VND 1,566.7 billion from the offering to existing shareholders. This amount is prioritized to contribute VND 55 billion to Long An Export Processing Joint Stock Company (LAF) to invest in infrastructure to expand production and business.

At the same time, PAN will use VND 825 billion to increase its ownership ratio in member companies including Vietnam Fumigation Joint Stock Company (VFG), Ben Tre Seafood Import-Export Joint Stock Company (ABT), Company Joint Stock Company of Vietnam Seed Group (Vinaseed – NSC), 584 Nha Trang Seafood Joint Stock Company… In which, PAN plans to acquire all of ABT – a medium-sized seafood company in Vietnam. industry and 584 Nha Trang – the owner of the anchovy fish sauce brand of the same name. The implementation period is expected from the third quarter of this year to the third quarter of 2025.

The management of this business considers these companies to be companies with effective production and business activities and good growth plans. In addition to improving benefits for businesses, PAN leaders also believe that increasing the ownership ratio can create conditions to find strategic investors for each of the above companies through capital transfer or new issuance.

The PAN Group will also invest in M&A with new companies in the market, operating in the fields of agriculture and food, with a capital of 400 billion VND. This plan is expected to expand the business scale and complete the value chain of the enterprise in each of the above areas.

The rest, PAN takes 100 billion dong short and medium-term investment to optimize capital. Business leaders said they will choose safe products with fixed interest rates on capital and money markets. PAN Group also deducts more than 186.7 billion dong in this mobilization to pay debts for Vietcombank. The above debt has an interest rate of 4-4.5% a year. As of the end of March, PAN is borrowing about VND 4,575 billion from banks and VND 1,135 billion in bonds.

Previously, the business also spent more than 524 billion VND to increase its ownership in Bibica confectionery company to 98.3%. This is an important piece of the farm-to-table (3F) strategy when PAN enters the food industry.

In the first quarter of the year, revenue from member companies helped PAN Group’s sudden profit. Profit after tax reached nearly 170 billion dong, 3.3 times higher than the same period last year and completed nearly a quarter of the whole year business plan.

The growth partly came from the consolidation of subsidiary VFG after gaining control from the end of 2021. In addition, the enterprise also implemented the restructuring of fixed assets at the member unit, which recorded receive Bibica’s large profit contribution from this.

Siddhartha