The 9th livestock company belongs to BAF, aiming to bring 10 million commercial pigs to the market

BAF Vietnam has just announced the transfer of 70% of capital at Hoa Phat Bon Company Limited, a livestock enterprise with charter capital of 50 billion VND and headquartered in Gia Lai province.

BAF receives capital transfer from a business in Gia Lai

BAF Vietnam Agricultural Joint Stock Company (HoSE: BAF) has just announced information about receiving the transfer of 70% of its capital contribution at Hoa Phat Bon Company Limited. This is a company with a charter capital of 50 billion VND, headquartered in Lang Tu, Ia Lau Commune, Chu Prong, Gia Lai.

The Board of Directors decided to assign Ms. Bui Huong Giang - General Director of BAF Vietnam, to decide all issues and proactively carry out the work. At the same time, Ms. Giang is the authorized representative to manage all shares of BAF Vietnam at Hoa Phat Bon.

Since October 2024, BAF has continuously promoted M&A activities by receiving capital transfers at 8 different livestock enterprises.

Previously, BAF received the transfer of nearly 3.55 million shares, equivalent to 99.99% of the charter capital of Thanh Xuan Clean Agriculture Development Joint Stock Company, a business operating in the field of cultivation and livestock breeding in Thanh Hoa.

Earlier, at the end of October, BAF acquired 95% of the capital contribution of Khuyen Nam Tien High-Tech Livestock Company Limited in Dak Lak for VND47.5 billion. Next, BAF also received the transfer of shares in five other livestock companies in Quang Tri, each company 171,500 shares, accounting for 49% of the charter capital.

In parallel with M&A activities, BAF is implementing a plan to issue 65 million individual shares, raising more than VND1,000 billion to expand production and business activities. BAF plans to use nearly VND558 billion to buy feed and additives, VND450 billion to buy breeding pigs and raw materials for the farm, with disbursement time from Q4/2024 to Q4/2025.

BAF Vietnam is emerging as a phenomenon in the livestock industry with a strong M&A strategy. In just the past two months, BAF has acquired 9 livestock companies, creating an unprecedented wave of expansion.

According to Mr. Ngo Cao Cuong, BAF's Chief Financial Officer, the company is quickly taking advantage of the market gap, especially when the new regulations of the Animal Husbandry Law take effect from January 1, 2025. Small-scale livestock farms in residential areas will be forced to relocate, creating great opportunities for large-scale companies like BAF to expand their market share.

In the first 9 months of 2024, BAF Vietnam recorded a profit after tax of VND 215 billion, more than 4 times higher than the same period last year, completing 70% of the annual plan. This result clearly reflects BAF's success in restructuring its operations, gradually reducing the agricultural business segment to focus on closed-loop pig farming according to the 3F model.

BAF’s pig herd size has increased significantly in recent times, from approximately 330,000 heads at the end of 2023 to 520,000 heads at the end of September 2024, equivalent to a growth rate of 73%. As a result, BAF Vietnam’s commercial pig output could reach 1 million heads.

It is known that BAF aims to increase the total herd to 100,000 sows by 2025 (an increase of more than 30%), to 185,000 sows by 2026 (an increase of 85%), and to about 260,000 sows by 2027 (an increase of 40.5%).

By 2030, the company aims to have 102 farms with a total herd of 450,000 sows and 10 million commercial pigs for sale. The farm system will be developed in a balanced manner across the three regions of the country, instead of being concentrated in a certain area, to maximize coverage.

BAF's board of directors shared that the company plans to spend about VND3,000 billion to build 15 farms to expand its scale in 2025. If it cannot build in time, BAF will rent or find a partner with available capital and land to build farms according to BAF's model and then rent them back.

Source: https://danviet.vn/cong-ty-chan-nuoi-thu-9-ve-tay-baf-muc-tieu-dua-10-trieu-lon-thuong-pham-ra-thi-truong-202501032120179.htm