BAF Vietnam plans a total 20% payout via bonuses and dividends, and to appoint Siba Holdings' CEO to the board.

BAF Vietnam has submitted documents for its 2026 annual general meeting of shareholders, proposing a capital increase to strengthen its financial capacity for an expansion roadmap. The plan also includes expanding the sow herd, adding personnel from major shareholder Siba Holdings to the board, and issuing additional equity and debt instruments.

Capital increase and share issuance plan

BAF plans to raise charter capital to above 3,700 billion VND. To do so, the company proposes issuing nearly 69 million additional shares through a 10% stock dividend and a 10% share bonus funded from retained earnings.

In addition, BAF intends to issue up to 8 million shares under an employee stock option program (ESOP) at 10,000 VND per share.

After completing the proposed offerings, charter capital is expected to exceed 3,700 billion VND.

Convertible bond issuance

Alongside equity, BAF plans to issue up to 1,200 billion VND of convertible bonds with a 36-month maturity and a fixed 10% annual coupon.

The conversion price will be set based on the average of the last 20 trading sessions, but not below 15,000 VND per share. Conversion exercise is scheduled at the end of the first year, the second year, and at maturity.

Bondholders also have the right to request early redemption of up to 50% of the bonds after 24 months, with a 6% per-year cumulative interest rate.

Use of proceeds and production expansion

BAF expects to allocate the raised funds as follows: 700 billion VND for production and pig farming activities, and 500 billion VND for restructuring the issuer’s debts.

The company’s capital-intensive strategy is linked to expanding production infrastructure, including the development of 16 new farms across the Central Highlands and Central region. The plan targets a total sow herd of 145,000, nearly doubling from 2025.

Tay Ninh high-rise pig farming project

A key infrastructure item is a high-rise pig farming project in Tay Ninh, implemented in strategic cooperation with Muyuan Group, with a total investment of 12,000 billion VND.

The project is designed to include 64,000 sows and 1.6 million fattening pigs per year. It is scheduled to begin in 2026 and is expected to generate around 10,000 billion VND in annual revenue once operational.

Board and governance changes

In addition to reappointing Ms. Bùi Hương Giang, BAF’s board proposes appointing Mr. Nguyễn Văn Phú as a member for the 2026–2031 term.

Mr. Phú currently serves as CEO of Siba Holdings, the largest shareholder of BAF, holding 31.47% of the company’s charter capital.

2026 business targets

For 2026, BAF targets consolidated revenue of 8,431 billion VND, up about 70% year-on-year. Net profit after tax is expected to reach 793 billion VND, based on assumptions of a rebound in live hog prices and optimized production costs.

For context, BAF reported consolidated net profit after tax of over 120 billion VND at the end of 2025, amid sector-wide pressure from disease and market volatility.

Meeting timeline

The shareholders meeting is scheduled for the afternoon of April 23, 2026 in Ho Chi Minh City to approve the proposed capital increase, bond issuance, governance appointments, and related items.