As part of the plan, TCO will privately issue 58.5 million shares to exchange for 13 million shares (100% capital) held by 3 individual shareholders at An Vi Company, including Mr. Do Van Lua, Mrs. Pham Vu Thu Suong, and Mrs. Nguyen Thi Hanh. The exchange ratio is 1:4.5 (the above individuals will receive 4.5 million TCO shares for each An Vi share).
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List of 3 shareholders of An Vi who will exchange TCO shares
Source: TCO
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The issued shares will be subject to a minimum transfer restriction of 1 year from the end date of the offering. The implementation is expected to take place in 2024, after approval from the State Securities Commission.
The proposal was approved at TCO’s extraordinary General Meeting of Shareholders in 2023. The issuance of exchange shares at An Vi Company is in line with TCO’s development direction in the near future as the company expands into the agriculture and food sectors, as well as their related industries.
Regarding An Vi, the company was established in 2020 with a charter capital of 130 billion VND. Its main business is rice milling and production of raw flour. An Vi owns a rice milling plant with a total land area of about 11.7 ha in Tan Chau town, An Giang province. The plant has convenient road and waterway access, and is located just over 15km from the Cambodian border.
TCO considers An Vi’s plant to be one of the largest in the Mekong Delta region at the present time. Therefore, the partnership between TCO and An Vi will help minimize logistics costs and increase competitiveness in terms of service time and prices.
After a successful issuance, TCO will become the sole owner of 100% charter capital of An Vi. Accordingly, An Vi will be converted into a Limited Liability Company (LLC). The restructuring of An Vi will be delegated to TCO’s Board of Directors.
