Masan MEATLife Corporation has approved a plan to contribute a maximum of VND740 billion ($31.2 million) to MEATDeli HN Co., Ltd, its wholly-owned subsidiary.
Masan MEATLife, a subsidiary of Vietnamese multi-business corporation Masan Group, also said that it will authorize its chairman Danny Le and/or general director Nguyen Quoc Trung, to decide the specific time and amount of additional contributions for each phase.
Masan MEATLife is the result of a merger in 2015 between two leading feed companies in Vietnam, ANCO and Proconco. The company has invested in the rest of the supply chain (farms, processing plants, retail chains in 2017-2018) and completed the 3F chain (feed-farm-food) with the launch of MEATDeli clean mea.
Masan MEATLife owns a high-tech pig farm in the central province of Nghe An covering over 223 hectares with investment of VND1.4 trillion ($59 million), capable of supplying 250,000 pigs per year.
The company has also invested more than VND2 trillion ($84.33 million) to build two meat processing complexes: MEAT Ha Nam in the northern province of Ha Nam and MEATDeli Saigon in Ho Chi Minh City. The two complexes have a total processing capacity of 2.8 million heads per year.
According to its financial report for the fourth quarter of 2022, Masan MEATLife owned five subsidiaries and four affiliates, with a total value at the end of 2022 of more than VND5,789 billion ($244.09 million), up 75% compared to the beginning of the year.
Of this, the capital contribution of MEATDeli HN was VND1,296 billion ($54.65 million). If the capital contribution is successful, the charter capital of MEATDeli HN will be raised to VND2,036 billion ($85.85 million).
Recently, Masan Group, listed on the Ho Chi Minh Stock Exchange as MSN, has approved the transfer of all shares owned at Masan MEATLife to Masan Agri JSC, a member company of Masan.
According to Masan, the purpose of the transfer is for internal restructuring in the field of agricultural production and business. The transfer can be through one or more transactions depending on the financial resources of the corporation, internal approval and approval of the competent state agency.
Currently, Masan owns more than 257.2 million shares of Masan MEATLife, equivalent to 78.63% of charter capital.
Masan MEATLife is listed on the unlisted public company market (UPCoM) as MML. The MML share price hit VND35,000 ($1.47) per unit at Thursday's closing session.