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VietNamNews

Pan Food aims to increase its stake in confectioner Bibica

Update: March, 14/2015 - 08:30
Workers produces cakes and other sweetmeats at Bibica Corporation. — VNA/VNS Photo An Hieu
HA NOI (VNS)— Confectionery maker Bibica Corporation (coded BBC) yesterday announced that Pan Food Joint Stock Company, a subsidiary of Pan Pacific Corporation (coded PAN), made a public offer for over 4.6 million BBC shares, equivalent to nearly 30 per cent of the company's charter capital.

In a filing with the HCM Stock Exchange, Bibica said Pan Food offered to buy these shares for VND56,800 (US$2.65) each. This acquisition aims to increase Pan Food's ownership of Bibica. Both companies are headquartered in HCM City.

If the deal is secured at this price, Pan Food will pay over VND261 billion ($12.2 million) to own these shares.

BBC shares declined 1.75 per cent yesterday to close at VND56,000 ($2.62) a share.

Pan Food currently has a 21.13 per cent stake in Bibica, equivalent to 3.26 million shares. It aims to increase its holding to 51 per cent and take control of the confectionery maker.

Bibica currently has two major shareholders. Lotte Confectionery owns 6.79 million shares, or 44.03 per cent of Bibica's charter capital, while Pan Food became a major major shareholder on January 27 by purchasing 2.3 million shares.

It is said that the Vietnamese board of directors are in conflict with the Korean investor about the company's development strategy. Bibica CEO Truong Phu Chien had previously told the media that Bibica expected a comprehensive partnership with Lotte in terms of management expertise, technology and export support, but the Korean investor only wanted to make it a subsidiary.

Apart from Pan Food, another subsidiary of Pan Pacific Corporation, Ben Tre Aquaproduct Import and Export Co (coded ABT), holds a 3.58 per cent stake of Bibica, or 553,000 shares.

Bibica is one of the leading confectionery makers in Viet Nam with popular brands including Hura, Choco Bella, Orienko, Zoo and, OneTwoThree. Last year, it reported sales of almost VND1.13 trillion ($52.8 million), an increase of 7 per cent over the previous year. Its net profit also went up 27 per cent to reach VND57.4 billion ($2.7 million). — VNS


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