(Bloomberg) -- Vietnam’s biggest coffee bean exporter Intimex Group plans to offer as much as a 49% stake to foreign investors this year as the company looks to expand its instant coffee factory, Chairman Do Ha Nam said.
The former state-backed company, which is now owned by domestic investors, will issue new shares for the stake sale, according to Nam, who is also chief executive officer. Talks with foreign investors are expected to begin after the instant coffee factory in Binh Duong province, which borders Ho Chi Minh City, reaches its current designed capacity of 4,000 tons a year this quarter, he said.
Intimex eventually plans to list shares on one of Vietnam’s stock exchanges, said Nam, who declined to provide further details, including the anticipated value of the stake sale. The company aims to surpass Nestle SA as Vietnam’s biggest instant coffee supplier with a plan to boost the annual capacity of its Binh Duong plant to 20,000 tons by 2025.
“Several foreign investors have been interested in our stake,” Nam said in an interview in Ho Chi Minh City. “There’s been no other company in the world that exports as much coffee beans as we do.”
Intimex exported 400,000 tons of robusta beans last year to companies including Nestle, Neumann Kaffee Gruppe and Jacobs Douwe Egberts BV. While that’s a 20% drop from the previous year due to the global pandemic, it’s still more than the 300,000 tons of green beans shipped by Cooxupe, Brazil’s top producer and exporter of arabica coffee.
Export Outlook
Vietnam is the world’s largest producer of robusta beans, used primarily for instant coffee. The country exported 1.57 million tons of coffee last year, according to the customs department. The nation’s 2021 shipments are forecast at “no more than 1.5 million tons” due to lower output, said Nam, who is also the vice chairman of the Vietnam Coffee–Cocoa Association.
Intimex currently has nearly 35 million shares with 47% held by institutional investors, according to a report prepared for a shareholders’ meeting last May. Do Thanh Motor Joint Stock Co. and Hanoi-based Vietnam Intimex Joint Stock Co. own more than a combined 30% stake in the company, said the chairman, whose family has a stake of about 20% in the company. He declined to say who owns the remaining shares.
The company, which also exports rice, cashews and black pepper, reported 2019 shipments of almost $1 billion, the report said. Nam sees the company’s 2021 total revenue at 40 trillion dong ($1.7 billion), similar to last year.
State-run Simexco Daklak, Vietnam’s second-largest coffee exporter, said in 2019 it was planning to sell a majority stake. Vietnam National Coffee Corp., the nation’s largest state-owned robusta producer, has also said it plans a share sale.
(Updates the story with family’s company stake in the seventh paragraph.)
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
