Kido on the market for vegetable oil companies
Kido on the market for vegetable oil companies
Foodstuff producer Kido Joint Stock Company (KDC) is increasing stake acquisitions in vegetable oil manufacturing companies as part of its strategy to penetrate deeper into the food and spice market.
According to newswire Vnexpress.net, KDC has sent a document to Tuong An Vegetable Oil (TAC) to express its interest in buying a 65 per cent stake, equalling 12.34 million shares.
The purchase’s value has yet to be disclosed, however, based on the market price of TAC’s shares at the end of August 31, which stood at VND63,500 ($2.85), KDC may spend well over VND783 billion ($35.1 million) on the purchase.
Earlier in June, KDC announced a plan to raise its stakes in cooking oil company Vietnam Vegetable Oil Industry Corporation (Vocarimex) from 24 per cent to at least 51 per cent this year.
In addition, the company is expected to earn VND2 trillion ($89.68 million) from the sale of its remaining 20 per cent stake in Kinh Do Binh Duong JSC, now Mondelez Kinh Do, its cake and candy arm, to Mondelez International Inc. The sale is expected to be completed this year. In 2014, KDC sold 80 per cent of its shares to Mondelez International for $370 million.
KDC is currently manufacturing and trading ice-cream, dumplings, vegetable oil, and instant noodles. In the first six months of this year, KDC earned VND590 billion ($26.5 million) in net revenue and VND134 billion ($6.01 million) in net profit. The company expects to achieve a revenue of VND1.8 trillion ($80.8 million) and a pre-tax profit of VND1.5 trillion ($67.3 million) this year.
