Angimex is one of the largest rice import-export companies in the country
|
On March 7, Angimex’s Board of Directors approved the transfer of capital contribution at Angimex-Kitoku Joint Stock Company (abbreviated AKJ), equivalent to 32.96% of the charter capital, to APC Holdings Joint Stock Company. The transfer price is proposed by APC Holdings.
Prior to that, Angimex had a joint venture with Kitoku Shinryo Company (Japan) to establish AKJ, which is mainly engaged in rice import and export with a charter capital of over VND 8.1 billion, of which Angimex owns 32.96% of capital; Kitoku Shinryo holds 67.04%.
On March 01, AGM’s Board of Directors approved the transfer of a maximum of 3.25 million shares, equivalent to 29.55% of the capital of Golden Paddy Joint Stock Company to The Golden Group Joint Stock Company. The expected transaction value is VND 31.4 billion, to be implemented in 2024.
Golden Paddy has a charter capital of VND 110 billion, of which The Golden Group holds 68.18% capital, Angimex holds 29.55%, and Mr. Luong Dang Xuan holds 2.27%.
AGM’s Board of Directors also wants to transfer the entire 25% capital of Saigon – An Giang Trading Company Limited (Sagico) to the Ho Chi Minh City Cooperatives Trade Union and An Giang Agricultural Products Import-Export Joint Stock Company (UPCoM: AFX). The transfer value has not been announced yet, but it will be based on the proposals of the three units above.
Sagico operates in the supermarket business sector, with a charter capital of VND 46 billion, including shareholders such as the Ho Chi Minh City Cooperatives Trade Union, Saigon Trading Corporation Limited, AFX, and Angimex.
In late 2023, AGM’s Board of Directors approved the transfer of the entire capital contribution at Angimex Furious Company Limited (motorbike and spare parts trading), equivalent to 21% of the charter capital, to The Golden Group.
As of December 31, 2023, Angimex has 6 subsidiary companies (100% owned capital), mainly operating in the fertilizer, food, seed, and agricultural services sectors. At the same time, the Company contributes capital to 5 joint ventures and associations with a total invested capital of over VND 145 billion.
However, Angimex has an imbalance of capital when the owner’s equity is VND 29 billion but the debt to repay is VND 1,230 billion (mainly short-term debt). Therefore, the Company’s Board of Directors has approved the transfer of capital contributions in a series of subsidiary companies, joint ventures, associations, and factories.
In addition to selling assets, Agimex also wants to borrow from individuals, credit institutions, and issue private placements to professional securities investors. Specifically, the Company plans to sell 15 million private placement shares at a price not lower than VND 10,000 per share.
Furthermore, at the end of 2023, Angimex recorded a debt of VND 987 billion, of which bond debt accounted for VND 560 billion. In order to restructure the debts, the Company plans to issue private placement shares to convert debts, issue preferred dividend shares with warrants to convert debts, or offer private placement shares to professional securities investors to raise funds for debt repayment. The expected number of shares to be issued is 56 million.
Therefore, Angimex plans to issue a total of 71 million shares to increase the charter capital from VND 182 billion to VND 892 billion. The expected time of issuance is in 2023 or 2024, after approval by the SSC.
Angimex is the leading rice exporter in Vietnam. In 2021, the Company expected significant changes when the new investor Louis Holdings replaced Nguyen Kim Investment and Development Joint Stock Company.
Troubles came in 2022 when the Louis Holdings group faced a crisis as Mr. Do Thanh Nhan was prosecuted for manipulating the stock market. Since then, Angimex’s business activities have plummeted.
| Angimex’s business performance from 2018-2023 |
In 2022, Angimex incurred a net loss of over VND 234 billion and continued to incur a loss of VND 207 billion in 2023, thereby pushing the accumulated loss to over VND 153 billion – exceeding the charter capital, leading to the risk of compulsory delisting. To remedy this situation, the Company proposes to use the development investment fund (VND 120 billion) and other funds under the owner’s equity (VND 5 billion) to offset the accumulated loss.
In 2024, Angimex plans to achieve revenue of VND 2,854 billion, 3.5 times the performance in 2023. The estimated pre-tax profit is VND 27 billion, after 2 years of losses.
