OCH buys into ice-cream brand
OCH buys into ice-cream brand
Ocean Hospitality and Services Joint Stock Company (OCH) now owns 78.4 per cent of Trang Tien Ice-cream JSC's charter capital, according to the OCH's 2013 financial report.
The OCH spent a total of VND500 billion (US$23.8 million) to hold the controlling stake at one of the most famous food brands of Ha Noi. The deal acquiring 634,700 shares of Trang Tien Ice-cream was completed in December last year, three years after the transferring contract was signed.
Trang Tien Ice-cream, which was established in 1959 and has since developed into the most favoured food brand in Ha Noi, was privatised in 2000 and all its shares, worth only VND3.2 billion (or $152,380 at the current exchange rate), were sold to its internal staff. The low value of Trang Tien Ice-cream was partly due to the fact that the land value was not included in the company asset valuation at the time of privatisation.
Trang Tien Ice-cream had attracted the attention of many investors after its privatisation because of its famous brand name and also on account of the 1,500 square meters of land on Trang Tien Street, one of the most crowded streets in the city's centre.
Ha Trong Nam, older brother of Ha Van Tham who was chairman of Ocean Hospitality, became chairman of Trang Tien Ice-cream in 2008, holding 92 per cent of the shares of the ice-cream company.
In October 2010, Nam and Ocean Hospitality signed a contract to transfer shares of Trang Tien Ice-cream. In October last year, Nam became a member of Ocean Group's (OGC's) management board, of which the OCH was a member company, two months before the deal was completed.
At the shareholders meeting in 2011, Tham said that a complex and high-end apartments would be built on the land of Trang Tien Ice-cream, but the company would continue the ice-cream business, Vnexpress online newspaper reported.
The OCH, with a charter capital of VND2 trillion ($95.3 million), ran businesses in hotel construction and operations with a revenue of VND310 billion ($14.7 million) last year. The company also operated in the confectionery and beverage sector with the turnover reaching VND232 billion ($11 million) last year after acquiring Givral-Sai Gon Bakery.
vietnamnews
