Pan Food’s designs to take over BBC

PAN Food is looking to seize control of Bibica Corporation

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PAN Food Joint Stock Company is a subsidiary of The PAN Group, and it had a revenue of $12.43 million in 2012 and $121.3 million in 2016.

PAN Food has just made a bid for 1.12 million shares of Bibica Corporation (BBC), which compose 7.27 per cent of its total stock volume. Share price is $4.95 per share. The funds for the share purchase come from owner’s equity and other legal financial sources of PAN Food.

PAN Food has been the biggest shareholder of BBC since 2015. It currently holds 6.74 million shares, which is 43.73 per cent of BBC’s total stocks. If PAN Food succeeds in buying more shares from BBC, it will hold 51 per cent, which is more than Lotte Confectionery’s current holding.

Lotte Confectionery was previously the main shareholder of BBC after its main counterpart Saigon Security Inc. (SSI) sold its entire holding.

In 2007, BBC sold a 30 per cent stake to Lotte. The stake has been gradually increasing over the years, to 43.56 per cent as of the end of 2013, equal to 6.3 million shares, as a result of SSI’s divestment.

PAN Food has supported BBC in improving its product quality. In 2016 BBC, with the help of PAN Food, has gained $55.5 million in revenue and $3.6 million in profit after tax.

Its dividend yield was 12 per cent. BBC’s 2017 target revenue is $61.5 million and its target profit after tax is $3.8 million. The expected dividend yield in 2017 is 12-18 per cent.

Vo Ngoc Thanh, the third largest shareholder of the company, has sold 300,000 shares, which is 1.96 per cent of the total stock, at the share price of $4.83 per share. Truong Phu Chien, deputy chairman and general director of BBC, also registered to sell 110,000 of his 118,000 shares.

Phan Van Thien, deputy general director, and Vu Van Thuc, deputy director of the Finance and Accounting Department, are also willing to part with about 32,000 shares, which compose 0.21 per cent of BBC’s stock.