Foreign partner to eat up all KIDO's treasury stocks

By Thi Ha   December 20, 2022 | 04:57 pm PT
Foreign partner to eat up all KIDO's treasury stocks
Tuong An Cooking Oil, a product of KIDO Group subsidiary Tuong An Vegetable Oil JSC, is produced in a HCMC factory. Photo courtesy of KIDO Group Corporation
Confectionary maker and food producer KIDO will sell over 22 million treasury shares to a foreign consumer goods company that will help the Vietnamese company expand on the global market.

"This is a partner we will cooperate with for the long term," KIDO CEO Tran Le Nguyen announced the news at an irregular general meeting of company shareholders.

The company leader added that the exact time of the transaction would be made known later.

At the meeting, company shareholders also approved a proposal to buy back 10 million shares, accounting for 3.57% of total issued shares. The goal is to reduce charter capital as prescribed by experts.

This deal is expected to be executed in 2023.

After the transaction, KDC’s charter capital will have fallen to nearly VND2.7 trillion ($112.5 million). The number of outstanding shares and treasury shares would then be 269.7 million and zero, respectively.

KIDO’s revenues surged by 29% to more than VND9.5 trillion over the first nine months of 2022.

The company’s pre-tax profits rose only 1% to VND458 billion over the same period, equivalent to just 54% of the company’s yearly plan.

KIDO’s 2023 business plan calls for dividing the mega group into four main segments: cooking oil, ice-cream, confectionery and seasoning (fish and dipping sauce).

The company will seek joint venture opportunities with multinational corporations to expand product reach on both the domestic and international markets.

Previously, the KIDO Board of Directors decided to divest from Chuk Tea & Coffee chains (formerly Chuk Chuk) under the TTV Trading Investment JSC.

KIDO has not disclosed the reason for the divestment.

According to the consolidated financial results for the third quarter, KIDO holds a 61% stake in TTV. The group had planned to open 200-300 outlets by the end of this year.

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