Parent company KIDO Group Corporation looking to sell 35% of subsidiary.
A Malaysian fund plans to spend $200 million on acquiring all shares in the KIDO Frozen Food JSC (KDF) under the KIDO Group Corporation (KDC), after the group announced the sale of 35 per cent of shares earlier this month.
A Japanese company also expressed an intention to buy the 35 per cent stake in KDF at a much higher price than the expected listing price of VND52,000 ($2.3) per share.
KDC’s Deputy Chairman and CEO Tran Le Nguyen told a conference introducing investment opportunities in KDF that 11.2 million shares, or 20 per cent, will be offered in April at a starting price of VND52,000 ($2.3) per share. The company will then offer the remaining 15 per cent to partners and employees.
Individual investors and domestic and foreign investors are permitted to purchase the shares. The number of shares available to individuals is a minimum of 3,000 shares and a maximum of 100,000, while for organization it is 10,000 and 500,000, respectively. Registrations are being taken from March 31 to April 12.
The shares are scheduled to trade on the Unlisted Public Company (UPCoM) market at the end of April.
The frozen food business brought substantial profits to KIDO last year. According to a report from the Ho Chi Minh Securities Corporation (HSC), its net revenue in 2016 reached VND1.4 trillion ($61.6 million), up 34.8 per cent against 2015. After-tax profit was VND143 billion ($6.3 million), up 85 per cent and accounting for 63 per cent of KDC’s profit.
Profit is expected to increase in the years to come when KDC’s frozen food facility in northern Bac Ninh province comes into operation. Construction began on November 8 with initial capital of VND400 billion ($18 million), on 25,000 sq m, making it the largest of its kind in Vietnam’s north.
KDF now owns a frozen product distribution network with over 70,000 points of sale throughout the country.
KDC's net revenue stood at VND2.2 trillion ($96.8 million) last year, down 28.7 per cent against 2015. Gross profit was VND880 billion ($38.72 million), thanks to consolidating the profits of the Tuong An Vegetable Oil Company (TAC).