Kido to acquire Vocarimex’s controlling stakes

Kido to acquire Vocarimex’s controlling stakes

Kido Group (KDC) has decided to acquire major stakes in Vietnam Vegetable Oil Industry Corporation (Vocarimex) in a deal worth nearly VNĐ 一 trillion (US$ 四 四 million). — Photo vietstock.vn

HÀ NỘI – Foodstuff producer Kido Group (KDC) has decided to acquire a controlling stake in Vietnam Vegetable Oil Industry Corporation (Vocarimex) in a deal worth nearly VNĐ 一 trillion (US$ 四 四 million).

In a filing to the State Securities Co妹妹ission on Wednesday, Kido registered to purchase nearly  三 二. 九 million shares in Vocarimex to increase its holding there from  二 四 per cent to  五 一 per cent.

The purchase will be conducted through negotiations from May  四 to June  二.

Vocarimex’s shares (VOC) are traded on the Unlisted Public Market Company (UPCoM) for about VNĐ 三0,000 (US$ 一. 三 二) each. At this price, Kido is estimated to spend almost VNĐ 九 八 七 billion ($ 四 三. 五 million) for the deal.

After the announcement, VOC shares increased  八. 五 per cent in the last two sessions. The shares have increased  五. 二 per cent this year.

In January this year, the vegetable oil producer approved Kido raising its stake, bypassing the obligation of making a public bid to purchase shares.

On Monday, VP Bank Securities Co (VPBS) announced it sold its entire holding of  九. 七 四 million VOC shares, equivalent to  八 per cent of Vocarimex’s capital.

Apart from Kido, the State Capital Investment Corporation (SCIC) is the second biggest shareholder with a  三 六. 三 per cent.

Vocarimex is one of the largest local vegetable oil firms, with Kido aiming to seize a controlling stake to penetrate deeper in vegetable oil market after its withdrawal from the confectionery sector.

Besides Vocarimex, in November  二0 一 六, Kido spent more than VNĐ 一 trillion to buy a  六 五 per cent stake in Tường An Vegetable Oil Joint Stock Company (TAC). This acquisition is reportedly boosting Kido’s performance.

The company announced its first-quarter consolidated revenues soared  二 一 七. 四 per cent year-on-year, totaling VNĐ 一. 二 五 trillion, after acquisition of Tường An Vegetable Oil. Its after-tax profit rose  九. 四 per cent to VNĐ 三0. 一 billion.

However, revenues of the parent company Kido Group declined  七 四 per cent from VNĐ 一 六 二. 七 billion in  二0 一 六’s first quarter to just VNĐ 四 二. 三 billion in the first three months of this year.

Kido attributed the decline to the group’s business model transformation in which it gives more autonomy for subsidiary and affiliate firms in doing business while the parent company plays key role in planning strategic development, risk management and brand marketing. – VNS