AGM gives nod to targets and other plans for the year.
Vinamilk’s recent annual general meeting passed its business plans for 2016, including plans for broadening foreign ownership, a dividend payment for stage 2 in 2015, plans to issue bonus shares to raise capital, and an employee stock ownership plan (ESOP).
Targets for 2016 include revenue to reach $2 billion, an increase of 11 per cent against 2015, and pre-tax and after-tax profit of $450 million and $371 million, respectively, increases of 6 per cent against 2015. Dividends in 2016 will continue to be paid at a minimum rate of 50 per cent of after-tax profit, in two stages: August 2016 and May 2017.
Vinamilk expects to issue more bonus shares this year to increase share capital out of ownership capital to 20 per cent (equivalent to an issuance rate of 5:1). The final registration date is to be in the third quarter of this year and charter capital post-issuance will rise by some $108 million.
Shareholders also approved plans for issuing nearly 9.44 million shares under an ESOP. It will sell 533,795 shares of treasury stock (collected from ESOPs in 2007 and 2011) and issue more than 8.9 million new shares, equal to 0.74 per cent of all issued shares.
On broadening foreign ownership, many shareholders are concerned that Vinamilk will be acquired by foreign investors. Company leaders told the meeting that they have no idea why the State Capital Investment Corporation (SCIC) withdrew its capital and they are also concerned about broadening foreign ownership.
Vinamilk’s shares will not be listed on a foreign stock exchange because ownership of foreign investors has reached 49 per cent already. The question of broadening foreign ownership therefore needs further consideration.