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GTNFoods outlays $79.2mn for Vilico and Vinatea

Released at: 11:18, 29/03/2017

GTNFoods outlays $79.2mn for Vilico and Vinatea

Photo: GTNFoods

Vinatea acquired last year and Vilico recently, company leaders tell AGM.

by Tue Lam

Having acquired two State-owned agricultural enterprises, GTNFoods JSC (Stock Code GTN) targets consolidated revenue of nearly VND4 trillion ($176 million) this year and after-tax profit of VND225 billion ($9.9 million).

GTN completed its acquisition of the Vietnam Livestock Corporation (Vilico) and the Vietnam National Tea Corporation (Vinatea) at a cost of over VND1.8 trillion ($79.2 million), company leaders told its annual general meeting for 2017 on March 28.

Deputy Chairman of the Board Mr. Nghiem Van Thang said the company spent VND1.3 trillion ($57.2 million) on acquiring 65 per cent of Vilico, the parent company of the Moc Chau Dairy Cattle Breeding JSC (Moc Chau Milk).

It completed its acquisition of 95 per cent of Vinatea last year.

Moc Chau Milk now accounts for nearly 90 per cent of Vilico’s total business results. It recorded nearly VND2.3 trillion ($101.2 million) in revenue last year and over VND215 billion ($9.46 million) in profit, up 10 per cent compared to 2015.

It holds a market share of 10-11 per cent, according to Mr. Tran Cong Chien, its Chairman and CEO. The company targets maintaining growth of 10 to 15 per cent per year and to develop its cattle herd to 32,000-35,000 heads.

GTNFoods recorded VND1.8 trillion ($79.2 million) in consolidated revenue last year and VND16 billion ($704,000) in after-tax profit.

Vilico conducted an initial public offering (IPO) in 2013 before listing on Hanoi’s UpCOM market in 2015. Vinatea, meanwhile, conducted an IPO in September 2015 as part of its divestment plans and in increasing its charter capital to VND370 billion ($16.45 million). 

GTNFoods was formerly the Dai Viet Minerals and Environment JSC, established in 2011 with capital of VND80 billion ($3.52 million). Within just three years, it increased its capital 8.5-fold and was listed on the stock exchange in 2014, when the company embarked on M&A activities, starting with a 10.14 per cent equity in Ladofoods.
 

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