Soc Trang, Vietnam-based shrimp exporter Fimex (Sao Ta) announced plans to invest VND 200 billion (USD 8.6 million, EUR 8 million) to acquire a new farming area – a move made after it entered into a strategic partnership with CP Foods’ Vietnam arm C.P. Vietnam.
In a filing to the Ho Chi Minh Stock Exchange, Fimex said the funds will be used to buy out Vinh Thuan Co., Ltd, which owns 203 hectares of shrimp farms in Soc Trang. Within this month, Fimex will pay Vinh Thuan VND 180 billion (USD 7.7 million, EUR 7.2 million) to own 99 percent of stake in the farmer. The remaining VND 20 billion (USD 860,000, EUR 803,000) will be paid to acquire the remaining 1 percent stake by June 2023.
Earlier this year, Fimex subsidiary Khang An got approval from the Soc Trang provincial government to develop shrimp farming on an area of 52 hectares. As of the end of 2021, Fimex had 270 hectares of shrimp farms.
Fimex plans to raise shrimp on the newly-acquired areas of 255 hectares by the end of 2024, Fimex Chairman Ho Quoc Luc said in a statement on the company’s website on 6 June.
Luc also said the funds for the latest farming expansion mainly comes from the stake sales conducted in late last year.
In December 2021, Fimex announced that it signed a strategic cooperation agreement with CP Foods’ Vietnam unit, C.P. Vietnam. Under the agreement C.P. Vietnam paid VND 326.9 billion (USD 14 million, EUR 13.1 million) to own a 24.9 percent of stake in Fimex. Under the terms of the deal, C.P. Vietnam will increase its supply of shrimp larvae and shrimp feeds for Fimex, and in turn Fimex will share its expertise in shrimp farming and processing with C.P. Vietnam. The two sides will collaborate to expand Fimex’s farming areas, diversify its processed products, and further expand its export markets.
Fimex said on 1 June that it expects to finish harvesting shrimp in the first crop in its farms within this month.
Photo courtesy of Fimex
