Proconco’s shifting culture spurs shareholder divestment
Viet Nam Seaproducts Corp. (Seaprodex) has approved a plan to sell its stake in the Vietnamese-French Cattle Feed Joint Stock Co. (Proconco), despite disagreement from more than 20 percent of its shareholders.
At Seaprodex’s extraordinary shareholders’ meeting in August, 79 percent of shareholders – 63.4 percent of whom are state-owned stakes — agreed to the plan.
Seaprodex is the third largest shareholder of Proconco, with a 17.47 percent stake. The company plans to sell its shares at a price not lower than VND16,650 (US$0.75), which is the book value of Proconco at the end of 2014. Seaprodex can earn at least VND582 billion from the sale. It plans to use the money to expand its investment and pay dividends to its shareholders.
The Masan Group, parent company of Proconco, has moved toward the feed-farm-food model, without a dividend plan in the next five years. Masan Group also plans to merge Proconco with two of its other properties: Agro Nutrition International Co. Ltd. (Anco) and Masan Nutri-Science Co. Ltd.
The Dong Nai Food Industrial Corp. (Dofico), Proconco’s second largest shareholder, plans to sell its 17.5 percent stake in the company. The Institute of Agricultural Science and the Institute for Animal Husbandry under the Ministry of Agriculture and Rural Development (MARD) also have plans to divest from Proconco this year.
However, Seaprodex’s plan may not come to fruition in the near future: MARD has asked the representative of State capital in Seaprodex to stop its divestment plan in subsidiaries and associated companies. Deputy Prime Minister Vu Van Ninh has also asked MARD to sell its entire stake in Seaprodex by the end of this year.
Seaprodex to sell stake in Proconco
HA NOI (VNS) — Viet Nam National Seaproducts Corporation (Seaprodex) has approved a plan to sell all its stake in the Vietnamese-French Cattle Feed Joint Stock Company, better known as Proconco. However, many shareholders have expressed their disagreement with the company’s plan. At the …
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