After 10 years of lengthy internal competition, South Korean Lotte Corporation will fully divest Bibica (BBC), selling 44.03 per cent or 6.8 million shares and making The PAN Group the largest shareholder in the Vietnamese confectionery maker.
|Lotte Corporation will fully divest from Bibica, leaving The PAN Group in charge |
The divestment will take place from December 29, 2020 to January 27, 2021, through order matching or negotiation. The sale is conducted in the midst of the ongoing COVID-19 pandemic which has had far-reaching consequences for businesses, including Lotte. Following the sale, The PAN Group can fulfil its target to raise ownership at Bibica to 100 per cent.
At present, The PAN Group holds 50 per cent in the confectionery company, with long-term designs to buy 49.93 per cent. The group says that Bibica is an important piece in The PAN Group's 3F (farm – food – family) strategy to penetrate deeper into the food market.
Indeed, Lotte and The PAN Group have long been butting heads over Bibica's strategic course. Thus, The PAN Group has been vying for a controlling stake and then to become the sole owner of Bibica, with the aim of keeping some Vietnamese confectionery brands in the market amid the aggressive expansion of foreign confectionery products.
Lotte has made significant contributions to the development of Bibica. The South Korean firm has provided financial support, developed brands and Choco Pie production lines, as well as increased exports to the Asian market.
When the internal competition ends, Bibica will be able to turn its focus on increasing its scale, revenue, sales, and market share.