Make Kitco Your Homepage

Vietnam plans to sell shares of major state rice exporter Vinafood II

Kitco News

HANOI, Jan 9 (Reuters) - Vietnam plans to sell shares in the country's main rice exporter through an initial public offering (IPO) as part of efforts to speed up the privatisation of state firms.

The government plans to raise at least 1.16 trillion dong ($51 million) by selling a 22.97 percent stake in Vietnam Southern Food Corp, known as Vinafood II, according to an official privatisation plan dated Dec. 29 and published on the government website on Jan. 3. The company is Vietnam's main rice exporter.

Shares of the rice exporter would be sold at an initial price of 10,100 dong ($0.44) per share, valuing the company at $222.4 million.

In addition, the government said it planned to sell 25 percent of Vinafood II to strategic investors.

The share sale is expected within three months, the government said, without giving precise details.

Vietnam has accelerated its planned divestments of hundreds of state-owned enterprises, partly because of the need to fund a budget deficit and amid growing public debt, but progress has been slow. ($1 = 22,709 dong)

(Reporting by Mi Nguyen; Editing by Christian Schmollinger)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.