South Korean food conglomerate CJ CheilJedang seeking to buy a 47.33% stake in Ho Chi Minh City
-based food processor Cau Tre JSC, aiming to expand its foothold in the local market.
CJ wants to buy the shares via put-through transactions from three existing shareholders, which are VinaCapital
’s Transwell Enterprises Limited, Vietnam Investment Fund and Song Da Corp, according to a document Cau Tre JSC has prepared for an extraordinary general meeting.
Established in 1982, Cau Tre JSC processes a wide range of food products made from seafood and farm produce, which are sold at home and exported to a spate of countries such as Japan, South Korea, Canada and the U.S.
The firm earned a net profit of 1.2 billion dong ($53,700) on revenue of 334.4 billion ($14.86 million) in the first half of 2016. The firm had total assets of 311.8 billion dong ($13.86 million) as of June 30, down 18% from the start of 2016.
It had a registered capital of 117 billion dong ($5.2 billion) as of June 30. State-owned Saigon Trading Corp (Satra) is the largest stakeholder with a 45% holding. Transwell Enterprises Limited holds 37.33% and Vietnam Investment Fund 10%.
CJ, which has been present in Vietnam since 1998, earlier this year unveil a plan to spend $500 million to acquire food companies and invest in new projects in Vietnam.
In January 2016, CJ acquired a 4.18% stake in Vietnamese meat processor Vissan for over $13 million. CJ lost to Masan Group
in the race to acquire additional shares in Vissan.