SBT’s sugar mill in Vietnam announced that preference stock worth $28 million is sold to German development finance institution DEG. According to the investment of German Government, is to buy convertible preferred dividend stocks at VND30,000 ($1.26) each, 84 percent higher than SBT’s market price on July 25.
The financial transaction is expected completely in this September. It is expected that SBT’s capital will reach over $262.14 million (VNĐ6.084 trillion), increasing 3.7 per cent. The preferred stocks will be subject to transfer restrictions for at least one year from the day of issuance, the period will be six and a half years.
The investment will used to the sugar business of HAGL in Laos that SBT have bought in 2017, and changed its name to TTC Attapeu, along with investment costs for mechanization to expand organic sugar production.
TTC Sugar Attapeu mill is the first organic sugar refinery in Laos, with large-scale fields on nearly 2,640 ha, including a capacity of sugarcane crushing of 7,500 tons, and produces 700 tons of sugar per day. By last December, 4,500 tons of organic sugar products were exported to Europe. In the future, it will continue to increase organic sugar production to serve the domestic market and exportation. It is to maximize revenue, reducing costs and diversifying products to compete with Thai sugar industry.
In addition, SBT said this year it will be invested in Cambodia in order that expand sugarcane sourcing area in Indochina to 70,000 ha.