BAF Vietnam Buys Final 75% of Hung Phat Farm One for VND 162B

Overview

BAF Vietnam (HoSE: BAF) has approved the purchase of an additional 75% of Hung Phat Farm One for VND 162 billion, taking its ownership of the Gia Lai pig farming and breeding company from 25% to 100%. The board resolution also covers a 2026 employee stock ownership plan (ESOP) of 8 million shares at VND 10,000 each. The deal consolidates a livestock asset BAF already part-owned and deepens its position in the Central Highlands pig supply chain.

Key Facts

• BAF will acquire the 75% stake held by individual shareholder Nguyen Tran Tuan Cuong for VND 162 billion.
• BAF already holds the remaining 25%, carried at VND 54 billion, implying a 100% valuation of roughly VND 216 billion (about USD 6.48 million at the stated magnitude).
• Hung Phat Farm One was established on 26 January 2021 and operates in pig farming and pig breeding.
• Its registered office is in Bi Giong Hamlet, Po To Commune, Gia Lai Province.
• On completion, the company will convert into a single-member limited liability company wholly owned by BAF.
• Deputy General Director Truong Anh Tuan was appointed BAF’s authorised representative to manage the entire capital contribution.
• The ESOP covers 8 million shares, equal to 2.1928327% of shares outstanding, at VND 10,000 per share, for total par value of VND 80 billion.
• ESOP shares are subject to a one-year transfer restriction from the completion date; subscription rights cannot be transferred.

What Happened

According to a board resolution disclosed by the company, BAF Vietnam will take over the entire capital contribution of Mr. Nguyen Tran Tuan Cuong in Hung Phat Farm One, valued at VND 162 billion and corresponding to 75% of the charter capital. BAF already owns a VND 54 billion contribution, or 25%, so a successful transfer lifts its holding to 100%. The resolution states that Hung Phat Farm One will then be converted into a single-member limited liability company owned by BAF, and Deputy General Director Truong Anh Tuan will act as BAF’s authorised representative for the full contribution.

In a separate resolution, BAF approved a 2026 ESOP issuance of 8 million shares at VND 10,000 per share, a ratio of 2.1928327% of shares outstanding. The VND 80 billion in par value proceeds are earmarked to supplement working capital. Eligible subscribers include board members, members of the General Directorate, and key employees at BAF, its branches and subsidiaries. The plan is framed as recognition of staff contributions and a retention tool, and it will also raise charter capital. The filing does not disclose a completion date for the stake transfer or the ESOP.

Market Context

BAF closed at VND 31,600 on 29 September 2026. The shares trade on the HoSE under the food production industry group, within the broader food and beverage sector. The transaction is small in absolute terms relative to BAF’s market capitalisation, but it is consistent with the company’s pattern of buying out minority partners in farm assets it already controls. Vietnamese listed agribusiness names have been active in vertical integration, and full ownership of a pig breeding site in Gia Lai gives BAF direct control over supply from a province with growing livestock capacity.

Strategic Significance

The strategic logic is control rather than scale. Moving from 25% to 100% converts an associate-style holding into a consolidated subsidiary, giving BAF full operational authority over breeding stock and pig output at the Gia Lai site, and removing minority consent as a constraint on expansion or restructuring. For long-term holders, the ESOP is the more consequential item: 8 million shares at VND 10,000, roughly a third of the 29 September close, transfers value to insiders and key staff while diluting existing holders by about 2.19%. The offsetting argument is retention and alignment in a sector where farm-level execution and biosecurity determine margins. The cash cost of the acquisition, VND 162 billion, is modest against BAF’s balance sheet, but the combination of cash out and below-market equity issuance is a reminder that BAF is funding growth partly through shareholder dilution.

What to Watch

• Completion announcement confirming the transfer of the 75% stake and the conversion to a single-member LLC.
• Shareholder or regulatory filings detailing the ESOP record date, subscriber list and any revision to the issue price or size.
• BAF’s next quarterly earnings release for consolidation of Hung Phat Farm One and any change in livestock segment margins.
• Gia Lai provincial livestock and disease-control updates, given the farm’s pig breeding exposure.
• Further buyouts of minority stakes in other BAF farm entities, which would signal a broader consolidation programme.