Kido closes vegetable oil acquisition

November 25, 2016 | 14:15

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On November 24, Foodstuff producer Kido Joint Stock Company (KDC) completed the purchase of a 65 per cent stake, equalling 12.34 million shares, in Tuong An Vegetable Oil JSC (TAC), according to information published on Ho Chi Minh Stock Exchange’s website.

The official value of the deal was not disclosed. However, in early November, KDC offered a higher price than initially offered to show its determination to buy TAC’s shares. Notably, KDC is willing to pay VND82,000 ($3.66) instead of VND78,000 ($3.48) for a share.

Thereby, the purchase value may reach VND1.01 trillion ($45.17 million).

KDC’s increasing stake acquisitions in vegetable oil manufacturing companies, the newest addition of which would be TAC, is part of its strategy to penetrate deeper into the food and spice market.

Notably, earlier in June, KDC announced a plan to buy at least an additional 26 per cent stake in cooking oil company Vietnam Vegetable Oil Industry Corporation (Vocarimex) to raise its shareholding in Vocarimex from 24 to at least 51 per cent within the year.

Along with stake acquisitions from domestic partners, KDC also increased to co-operate with foreign firms.

Notably, on June 22, 2015, KDC, Felda Global Ventures (FGV) from Malaysia, and Indo Trans Logistics Corporation (ITL) inked a memorandum of business exploration (MOBE) on forming a cooking oil joint venture to produce and trade bottled cooking oil products in Vietnam.

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