Sojitz Forms Strategic Business Alliance with The Pan Group, a Major Listed Food Company in Vietnam
Sep. 25, 2018
Sojitz Corporation (“Sojitz”) has formed a strategic business alliance with The Pan Group Joint Stock Company (“PAN”), a major food firm listed on the Ho Chi Minh Stock Exchange, acquiring a 10.03% stake in the company (equivalent to 13.4 million of the company’s already issued shares) through third party allotment.
PAN was established by its current chairman, Mr. Nguyen Duy Hung, who founded and concurrently serves as chairman of Vietnam’s largest securities company, Saigon Securities Inc. PAN has expanded its business by actively pursuing M&A, becoming a listed company in 2010. In addition to operating Vietnam’s largest seed production company, PAN is involved in a wide array of businesses funded by Vietnamese capital, such as the country’s largest confectionary company and major export processing companies for agricultural and marine products, as well as aquaculture companies and companies related to farm produce.
In Vietnam, Sojitz has a diverse portfolio spanning fertilizer manufacturing, feed manufacturing, flour milling, wholesale foods, prepared food manufacturing, convenience store operations, and more. We aim to provide safe and reliable food products by creating a food value chain in the country.
By underwriting a capital increase in PAN, Sojitz will share its Japanese technological expertise and customer network as a general trading company, adding to PAN’s existing customer base and local networks. In the process, both companies will work to maximize their synergy in Vietnam to create new businesses such as those dealing with farming management and food processing, as well as aim to expand their aquaculture and marine product processing businesses further.
As part of this business alliance, Sojitz and PAN will also establish a “collaboration promotion committee” comprised of food and agribusiness staff from both companies, to strengthen the ties between them. Going forward, these comanies will continue to improve the lives of consumers by strengthening their businesses in Vietnam, while simultaneously accelerating overseas expansion to capture the exponential market growth in Southeast Asia, as well as the needs of consumers in developed countries.
Company Overview — The Pan Group Joint Stock Company
|Head Office||Lot A1-9, VL3 Str, Vinh Loc 2 Industrial Zone, Ben Luc Dist., Long An Province, Vietnam|
|Representative Director||Nguyen Duy Hung|
|Sales||JPY 19.8 billion (For the year ended December 31st, 2017)|
|Stock Listing||Ho Chi Minh Stock Exchange|
|Main Business||Agricultural products, marine products; food-related manufacturing, processing, and sales|