07:42 (GMT +7) - Tuesday 23/10/2018

Banking & Finance

PAN Group completes private placement with Sojitz

Released at: 14:09, 28/09/2018

PAN Group completes private placement with Sojitz

Photo: The PAN Group

Ten per cent stake sold to Japanese partner for $35 million.

by Hong Nhung

The PAN Group (Stock code: PAN) has announced the completion of a private placement of 13.4 million shares with Japan’s Sojitz Group at $2.62 per share. Sojitz parted with $35 million in the placement and became a major shareholder in PAN, with 10 per cent.

The PAN Group’s charter capital increased from $51.5 million to $57.3 million. The private placement provides it with more financial resources to invest and implement the next M&A projects in its development strategy in the agriculture and food industries. More importantly, Sojitz has been chosen as a strategic partner of PAN to implement mutually beneficial cooperation on the basis of upgrading Vietnam’s agricultural and food products for distribution to domestic and international markets.

“This is an important milestone in PAN’s development path,” said Ms. Nguyen Thi Tra My, CEO of The PAN Group. “Our selection criteria focused on a business partner rather than choosing a purely financial investment organization.”

“Together with the capital contribution, we have established a Collaboration Committee that includes key leaders from the two groups and is chaired by PAN’s Chairman. The Committee will bring together leading industry experts from Vietnam and Japan to formulate and promote the implementation of the agricultural and food projects of the two parties in Vietnam and other countries in the region. I believe that the cooperation will contribute to boosting Vietnamese agricultural and food products in international markets.”

“This is a special deal in the M&A market in the agriculture and food sectors,” said Ms. Nguyen Ngoc Anh, Director of Investment Banking North at Saigon Securities Incorporation (SSI). “Japanese investors are very selective in choosing partners and often conduct thorough research before making investment decisions. Meanwhile, The PAN Group, when choosing a strategic partner, also instigated stringent criteria as the company has an attractive business strategy and is in the process of accelerating its development.”

“In addition to the need for capital, PAN also desires to choose a partner who may understand and fully support the development strategy of the firm, have professional management systems, and can help bring PAN’s products to the world market. Therefore, we worked together for a long time to study each other’s development strategies and considered the possible added value for each party after the deal.”

Besides the capital investment, both parties also committed to sharing market information on Vietnam, Japan and the world, in order to expand and develop potential markets and products for PAN’s members, as well as consult and make assessments of existing resources and advantages of PAN in order to promote Vietnamese products to the world market.

The capital contribution to PAN also marks a turning point in Sojitz’s investment strategy, as this is a return for Sojitz investing in a listed company. The deal brought about strategic cooperation between the two companies, which have strict and professional criteria in choosing partners for joint development.

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