Japanese firm acquires 10% of major Vietnamese agriculture company

A production line of a subsidiary of PAN Group. PAN has offered a 10% stake to Japan’s Sojitz - PHOTO: PAN

Ho Chi Minh City - PAN Group, a leading agriculture and food processing firm in Vietnam, today, September 25 announced the sale of its 13.4 million shares, or 10% stake, to Japan’s Sojitz Corporation.

According to PAN’s press release, the price of each share was VND61,000, so the group earned VND817.4 billion, higher than the amount it had pledged with shareholders early this month.

After the deal closed, PAN’s charter capital rose from VND1.2 trillion to nearly VND1.34 trillion.

PAN will use the revenue from the share offering to conduct more merger and acquisition deals, targeting local agriculture and food processing companies.

However, the group’s main purpose in this deal was to enhance the strategic partnership with Sojitz for their mutual benefits.

PAN General Director Nguyen Thi Tra My said the group was seeking a strategic partner rather than merely a capital contributor.

Also, the two sides have jointly established a cooperation committee with the participation of senior leaders of the two firms. The committee will gather leading experts from both Vietnam and Japan to promote the execution of agriculture and food processing projects in Vietnam and other regional countries.

The two enterprises also committed to sharing market information in Vietnam, Japan and the world as a whole. In addition, Sojitz will provide consulting services and assess PAN’s current resources and strengths to help introduce Vietnamese products to the world.