PAN Group plans rights issue to raise $675 mln for acquisitions

Its board has approved a two-for-one rights offering of 104.4 million shares that is expected to fetch VND1.57 trillion.

The company plans to spend VND825 billion from it to increase ownership at five subsidiaries and affiliates over three years starting next quarter.

It will spend VND400 billion on acquisitions and another VND55 billion to expand infrastructure and production at subsidiary Lafooco.

The remaining VND285 billion will be used for short- and medium-term investments and repayment of debts.

PAN Group is betting on acquisitions of agriculture, fishery and food companies to boost the competitiveness of its feed-farm-food strategy.

Last month it bought a 39.9 percent stake in confectionery company Bibica for VND524 billion ($22.6 million) and now has a 98.3 percent stake in it.

Its post-tax profits tripled to VND170 billion in the first quarter of this year thanks to surging revenues at its subsidiaries.