PAN Food acquires Bibica in latest merger

PAN Food Manufacturing JSC (PAN Food) successfully acquired more than 50 per cent of Bibica Corporation (Bibica)’s stakes, overtaking Lotte Confectionery Co., Ltd. (Lotte) as the biggest shareholder and turning Bibica into a subsidiary. Pan Food’s designs to take over BBC Bibica power balance coming to an end? PAN Food to become principal shareholder of Bibica Bibica is now a subsidiary of PAN Food On August 30, 2017, PAN Food announced the successful purchase of 977,647 Bibica stocks, which raised its total holding in Bibica to 7,720,577 shares, an equivalent of 50.07 per cent. By holding more than 50 per cent, PAN Food has become the biggest shareholder in Bibica, overtaking Lotte, which holds 44.03 per cent. Therefore, Bibica has quietly become a subsidiary of PAN Food. However, as of the middle of June 2017, Lotte still had two representatives on Bibica’s board of directors, while PAN Food had only one, Nguyen Khac Hai. Currently, even though PAN Food holds a 51 per cent stake in Bibica, it cannot add another representative to the board of directors just yet, as they will have to wait until a Lotte representative or an independent member ends their term. The reason is that in accordance with the Law on Enterprises, PAN Food should hold 65 per cent of Bibica’s stakes to call a shareholders’…... [read more]

Confectionery makers strike it big in Q3 Minh Tam By Minh Tam - The Saigon Times Daily HCMC – Confectionery firms listed on the local stock market reported big profits in the third quarter after modest gains or losses in the two previous quarters. Kinh Do Corporation, listed on the Hochiminh Stock Exchange in its consolidated financial report, posted strong profit growth in the third quarter due to rising sales. The enterprise obtained nearly VND1.7 trillion in sales and service revenue, up by VND143 billion compared to the same period last year. Its revenue in the January-September period rose 6% to over VND3.2 trillion thanks to seasonal products like moon cakes and ice cream. The company also reduced sales, advertising and management costs. Kinh Do obtained VND318 billion in after-tax profit in the third quarter. It only posted January-September after-tax profit of VND311 billion, up 21.4% year-on-year, after earning only VND360 million in the first quarter and losing VND9 billion in the second quarter. Bibica Corporation also gained profits in the third quarter after suffering heavy losses in the previous quarter. It obtained VND14.9 billion in after-tax profit, a 25% year-on-year increase. Bibica general director Truong Phu Chien said the profit mainly resulted from a reduction in marketing costs, sales staff and sales expenses compared to last year. Besides, the enterprise launched new product Hura Pie onto the market, which made affiliate Bibica Mien Dong Co. Ltd. profitable. However, its profit in the January-September period plunged 64% to around VND8.4…... [read more]

Bibica-Lotte fight heats up Minh Tam By Minh Tam - The Saigon Times Daily HCMC – The marriage between local confectionery producer Bibica and Korea’s Lotte Confectionery Co. Ltd. turned from bad to worse as Bibica on Wednesday raised its voice to reject information announced by its partner. Speaking at a press briefing in HCMC on Wednesday, spokesperson of Bibica said Lotte has deeply intervened in business strategies of Bibica since the two sides entered partnership. Therefore, Lotte’s information that it did not meddle in management over Bibica was wrong and seriously defamed Bibica trademark. Therefore, Bibica held the press briefing to make clear the announcement. It is waiting for intervention from managing agencies to solve the problem. Ngo Thi Phuong Thao, PR director of Bibica, said that Yang Seok Hoon, representative of Lotte Confectionery in Vietnam and Bibica’s finance director, was invited to the press briefing. However, Yang, who directly provided the information, did not attend the event. Truong Phu Chien, CEO and legal representative of Bibica Corporation, said that Bibica and Lotte signed three contracts from 2006 to 2009, including a share trading contract, a strategic cooperation contract and a chocolate pie technology transfer deal. It is completely wrong to say that Lotte does not play direct management role in Bibica. The Korean group has appointed two members to the board of directors of Bibica, including the chairperson. Bibica has enough evidence to prove that Lotte has managed Bibica directly and signed many documents. Lotte actually has participated…... [read more]

PAN Food to become biggest shareholder of Bibica Minh Tam By Minh Tam - The Saigon Times Daily HCMC – The board of Bibica Corporation (BBC) approved a proposal by PAN Food Company (PAN Food) to buy over 4.6 million BBC shares to become the biggest shareholder at the confectionery producer. In a document sent to the State Securities Commission of Vietnam (SSC) and the Hochiminh Stock Exchange (HOSE), Bibica said three of the five members of the board voted for the proposal and the others abstained. According to Bibica, PAN Food bid for over 4.6 million BBC shares, equivalent to 29.97% of the total, at the price of VND56,800 each to increase its ownership and become a major shareholder. If the two sides ink an agreement, PAN Food will see its holding at Bibica rising to 51% and become the biggest shareholder. The value of the deal is over VND260 billion. At the end of January this year, PAN Food bought nearly 20% of Bibica from SSI Asset Management Company (SSIAM), a subsidiary of Saigon Securities Incorporation (SSI). SSI is an affiliate of Pan Pacific Corporation (PAN Pacific) and the two firms have the same chairman, Nguyen Duy Hung. At present, Korean firm Lotte Confectionery is the biggest shareholder of Bibica, with a 44.03% stake, followed by PAN Food with 21.13% and Duong Mat Troi Investment Company with 12.31%. Of note is Duong Mat Troi also received funding from SSI and the chairman of the former is a brother…... [read more]

Bibica explains VND4.7 billion tax debt Minh Tam By Minh Tam - The Saigon Times Daily HCMC – After the HCMC Tax Department fined Bibica Corporation for missing the tax payment deadline, the confectionery maker on Tuesday released a statement explaining its tax debts of over VND4.7 billion incurred in 2009-2012. Bibica said the tax debts in the period consist of three components, including over VND2.5 billion in personal income tax. The company forgot declaring some incomes of its employees and occasional payments of commissions and remunerations of its board of directors. The company owed over VND1.7 billion in corporate income tax as the tax department adjusted up collections of interest from a loan lent to Bach Tuyet Cotton Corporation. Bibica said it has yet to collect interest but the tax department still took the amount into account as part of the earnings from its financial activities. The tax agency excluded the copyright fee of Lotte Pie as a relevant contract has not been registered with the Ministry of Industry and Trade. However, it calculated the corporate income tax differential of interest payments for its employees when Bibica mobilized their idle funds. The final debt of nearly VND466 million resulted from the fact that the tax department wanted to take back the value-add tax (VAT) deduction from products the corporation discarded. Bibica was slapped with an administrative fine of over VND316 million and a fine of over VND1.8 billion for late tax payment. The company is required to pay the…... [read more]

PAN seeks to lift foreign ownership cap Hong Phuc By Hong Phuc - The Saigon Times Daily HCMC - Shareholders of PAN Group JSC (PAN), which is active in the agricultural sector, have approved a plan to raise foreign ownership in the listed firm on the Hochiminh Stock Exchange to up to 100%. At the general meeting on Tuesday, shareholders authorized PAN’s board to draw up a road map and work with authorities to carry out the plan. PAN chairman Nguyen Duy Hung said the firm wants to raise the foreign ownership limit (FOL) to 100% but this would take time as PAN is now in control of the two biggest seed companies in Vietnam. However, under Vietnam’s commitments to the Trans-Pacific Partnership (TPP) trade pact, the nation would not restrict foreign investment in the agricultural sector. Hung said PAN will send the FOL hike plan to the State Securities Commission and the Ministry of Planning and Investment after the Reunification Day (April 30) holiday. He said the FOL hike is expected by many investors and that foreign investors are finding big domestic companies in the agricultural and food sectors to make investments. There are few producers of clean food in Vietnam, he said. PAN is setting up its own distribution system for rice, seafood, cashew nut, confectionery and fish sauce. Hung said PAN eyes good businesses. The company wants to become an agricultural corporation rather than trading shares as Vietnam’s agricultural sector can compete with foreign rivals in the…... [read more]

Bibica sets prudent business targets The Saigon Times Daily HCMC - Mounting sugar prices and competition in the confectionery sector have forced Bibica Corporation to take cautious steps in setting this year’s business targets, including that for profit. At a shareholder meeting on Wednesday, many shareholders said the respective revenue and pre-tax profit targets of VND1.25 trillion (up 6.7% against 2014) and VND82.1 billion (down 22.1%) are low compared to the company’s capability, local media reported. Responding to shareholders’ concern, general director of Bibica Truong Phu Chien said the targets are based on material prices and market fluctuations. In particular, the year’s profit is projected to fall as unfavorable weather conditions could affect incomes of consumers and confectionery sales in rural areas. Costs of fuels and some materials are forecast to rise, thus affecting production costs. Besides, competition has intensified given the influx of imported products as a result of Vietnam’s stronger international integration. Bibica has enough sugar in stock for use until the end of the third quarter at a price of below VND15,000, still higher than last year. The price is projected to keep fluctuating and might climb to VND18,000-20,000 per kilogram, making it hard to translate the business targets of Bibica into reality. Minimum wages are also a matter of concern. Bibica will adjust the wage coefficient, resulting in its payroll going up 12% to over VND220 billion. Bibica aims for a market share of 8.6% this year and 14% in 2018. Shareholders agreed on a dividend…... [read more]

Care for disadvantaged kids in Mid-Autumn Festival Hung Yen Nguyet Many enterprises and organizations have organized a wide variety of activities for the benefit of unlucky children on the occasion of the Mid-Autumn Festival which falls on the fifteenth day of the eighth lunar month. Hoa Sen Group held a program from September 6 to 15 in which 2,500 gifts and 3,000 lanterns were given to poor kids in Nghe An, HCMC and Lam Dong. CJ CGV Vietnam, a cineplex firm of South Korea’s CJ Group, last week handed gifts to 1,000 poor children in Hanoi, HCMC, Danang, Can Tho and Haiphong to mark the Mid-Autumn Festival themed Trang Cuoi (smiling moon). CJ CGV also handed 50 scholarships worth VND2 million each to 50 poor kids with outstanding academic performance. Dai Phat Food earlier this month organized a Mid-Autumn Festival program at The Crescent Mall in HCMC’s District 7 for orphans and disabled kids at Que Huong charity center in Binh Duong Province. The company also awarded VND100 million to the charity. Bibica Corporation handed over 10,000 gifts of mooncakes, lanterns and confectionary to disadvantaged children in many provinces and cities. The total value of the donation was over VND500 million.... [read more]

Hanoi to plant 45,000 trees along Thang Long Avenue Hanoi plans to plant about 45,000 trees along Thang Long Avenue, the longest of its kind in Vietnam, stated Chairman of the municipal People's Committee Nguyen Duc Chung at his meeting with voters in Hoan Kiem district on August 15. The tree planting will help green up the city from Ba Vi outlying district to the National Convention Centre, Chung said. According to him, in the short term, around 20,000 trees will be planted. The capital city hopes to make a progress in managing trees in 12 inner districts, including a plan to grow one million new trees by 2020. To achieve the target, the city has consulted scientists and relevant offices about which types of trees should be planted. Thang Long Avenue has the length of 30km and the width of 140m for six lanes of vehicles. It connects Hanoi's inner part with satellite urban areas, such as Xuan Mai, Mieu Mon, and Son Tay, and tourist sites, including Ba Vi, Suoi Hai, and the Vietnam Ethnic Cultural Village. With its one end at Ho Chi Minh National Highway, it also links Hanoi with other localities. Can Tho seeks cooperation in clean agriculture with New Zealand The Mekong Delta city of Can Tho wishes to deepen cooperation with New Zealand in the farming sector, especially clean agriculture, in order to raise the locality's export value of safe agricultural products, said Chairman of the municipal People's Committee Vo Thanh Thong. At…... [read more]

HCM CITY - A variety of moon cakes have hit the market with more than a month to go for the Mid-Autumn Festival. Unlike in previous years, famous confectioners like Kinh Đô Mondelez, Đồng Khánh, Bibica, Hữu Nghị, and Givral have this year come to the market even before the seventh lunar month. Kinh Đô Modelez began its moon cake season nearly a month ago by exporting a batch of products to the US. At home it has launched 62 varieties ranging from traditional style cakes to modern variations with abalone, Alaska shrimp, and crab. They cost VNĐ35,000 (US$1.6) to VNĐ460,000 ($21) for a box. Without disclosing the planned volume of supply, Vũ Quốc Tuấn, the company's deputy director of the foreign relations and communications division, told Việt Nam News "It will be higher than last year. The market this year will surely grow and consumption will rise in all segments." Đồng Khánh Food and Foodstuff Company Ltd told Việt Nam News that it has introduced nearly 20 kinds of moon cakes this year. Mai Thị Lộc, head of its marketing department, said "We have just launched the new products and are waiting for consumers' reactions. The plan may change then." Bibica Corporation has increased supply 11 per cent this year to 550 tonnes. It has set up some 500 kiosks in addition to 12,000 shops that would sell its cakes, the company said. There will be 50 products in three lines -- luxury, nutrition and tradition - besides fruit…... [read more]

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