ACB to divest from Thuy Ta Ice-cream firm

By Phuong Dong March 19, 2019 | 12:28 am PT

A restaurant of Thuy Ta located near Hoan Kiem Lake in Hanoi. Photo courtesy of Thuy Ta

The Asia Commercial Bank (ACB) has registered to divest its 10 percent stake in the Thuy Ta ice cream company.

The value of the divestment, set to take place between March 20 and April 18, is estimated at VND11 billion ($473,847) on the basis of Thuy Ta’s share prices Tuesday morning.

Thuy Ta Ice-cream’s shares has been rising since the beginning of this year, from around VND21,000 (90 cents) to the current VND37,700 ($1.62).

However, the company has been facing strong competition from foreign brands such as Cornetto, Paddle Pop, Haagen-Dazs and New Zealand Natural, all of whom offer premium options.

Thuy Ta, established in 1954, is also struggling to compete with local companies like Kido Foods and Vinamilk. Its market share is now below five percent and it operates only in Hanoi.

The company recorded revenues of almost VND102.5 billion ($4.4 million) in 2017, down 7 percent year-on-year. Its after tax profits fell 22 percent to VND5.78 billion ($249,000) in the same period.

Thuy Ta manufactures ice-cream products, operates restaurants, bottles and sells mineral water and sells photography equipment.