State-owned Vietnam National Tobacco Corporation (Vinataba) has registered to offload 8.4 million shares, or 51 per cent stake, of Hai Ha Confectionery after its share price hit an all-time high. The transaction is expected to take place between March 17 and April 14 through order matching on the Ha Noi Stock Exchange.
Foreign investors will be allowed to purchase the shares.
Shares of Hai Ha Confectionery Joint Stock Company (HHC) are trading at a record high of VND40,000 (US$1.75) a piece, up 72 per cent over its debut price (adjusted price) in 2007 and 97 per cent higher compared to a year ago.
At this rate, Vinataba could collect around VND335 billion from the divestment.
Founded in 1960, HHC has a charter capital of VND327 billion and is one of the largest confectionery manufacturers in Viet Nam, with a production capacity of 20,000 tonnes of products per year.
Vinataba is the biggest stakeholder with 51 per cent of the total shares. Another 15 institutions hold 8.26 per cent of its capital, of which Mekong Housing Bank Securities Co owns 6.61 per cent. Foreign ownership is 2.8 per cent.
HHC reported a total revenue of around VND855 billion and pre-tax profit of VND42 billion in 2016, which is a year-on-year increase of 8 per cent in revenue and 23 per cent in pre-tax profit. The export of its confectionery products was estimated at $3 million last year.
The company paid a total cash dividend of 15 per cent of its undistributed profits in December 2016 and February 2017.