Agriculture company The PAN Group Joint Stock Company decided to cap its foreign ownership at 49 per cent in an effort to keep the company a domestic firm
This decision was approved at the extraordinary shareholders’ meeting on October 26.
Previously, The PAN Group did not impose restrictions on the foreign holding limit in the company, so if foreigners owned 51 per cent of the company’s capital, the company would be considered a foreign business.
The Enterprises Law and draft Law on Securities (amended) stipulate that a foreign business must meet the conditions and procedures for foreign investment upon setting up economic organisations, making capital contribution and share purchase, as well as investing in the securities market.
The PAN Group said the foreign holding cap of 49 per cent would ensure the company is always a domestic economic organisation, thus it would not have to meet the conditions and investment procedures for foreign investors.
Foreign ownership in the company reached 45.84 per cent as of the end of 2017.
Its current major shareholders include The Asian Entrepreneur Legacy (TAEL) Partners (20.7 per cent), Saigon Securities Inc (13.7 per cent), and NDH Invest (10.8 per cent).
Last month, Japanese Sojitz Corporation paid over VNĐ817 billion (US$35 million) to buy a 10 per cent stake in The PAN Group.
At the meeting, Toshiaki Miyabe, managing Director of Sojitz’s Food and Agriculture Business Division, was elected as a member of The PAN Group’s board of directors for the 2018-22 term.
The company also approved the plan of issuing bonus shares to existing shareholders at the ratio of 4:1 (every four shares will receive one new share). The issuance is expected to be made in the last quarter of this year or the first quarter of next year. After the issuance, its charter capital will increase to VNĐ1.7 trillion ($73 million).
The PAN Group’s shares (PAN) closed flat at VNĐ48,100 ($2) per share on the Hồ Chí Minh Stock Exchange on Monday after suffering 10 consecutive falling sessions last week. However, its value has climbed over 27 per cent this year.
Source: Viet Nam News