:. Food Industry News


Kinh Do Delays First Merger of Vietnam Listed Firms

Source: Reuters
19/10/2007

Hanoi, Oct 19 - Vietnam's Kinh Do Food Corporation said it would delay a deal to take over subsidiary North Kinh Do Food Co until next year after the latter firm changed a share issuing plan, taking up more time.

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Ho Chi Minh City-based Kinh Do Corp said in August it aimed to complete the acquisition before the end of 2007, in what would be the first between two listed firms on the Ho Chi Minh Stock Exchange.

But in a Friday statement via the exchange Kinh Do said it now has to delay the acquisition until the second quarter of 2008 after North Kinh Do Food Co changed a plan on issuing new shares.

The statement did not detail the change.

North Kinh Do told the exchange on Wednesday it would seek shareholders' approval to issue nearly 2.93 million new shares to existing shareholders, staff and major investors to raise funds for equipment and to build an office building in Ho Chi Minh City.

Shares in Kinh Do Corp ended flat at 240,000 dong ($14.85) on Friday, valuing the firm at $534 million. North Kinh Do was valued at $135 million, after its shares gained 2.86 percent to close at 216,000 dong ($13.36).

Kinh Do makes food, confectionaries and fruit juice. It is also a general trader, dealing with goods ranging from textiles to home electric appliances to stationery, fruit and vegetables.

North Kinh Do, based in the northern province of Hung Yen, makes cakes, snacks and processes foods for domestic markets and exports to the United States and Taiwan.

Kinh Do said its plan to merge with another subsidiary, the unlisted Kido Company, would still go ahead to be completed by the end of this year.

Kinh Do has said it needed 1.27 trillion dong ($78.6 million) this year to invest in three real estate projects; an office building, a shopping mall and office complex and an apartment building in Ho Chi Minh City.

The State Securities Commission has allowed it to issue 11 million shares -- 9 million to major shareholders, 1 million shares for strategic investors and 1 million for employees.



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