Shareholders of confectionery giant Kinh Do Corporation have approved the sale of 80 per cent stake in its snack business to US-based Mondelez, maker of Oreo biscuits, for US$370 million. At an extraordinary shareholders meeting in HCM City yesterday (Monday) company deputy director Tran Quoc Viet said the confectionary business has slowed down in the last three years and the leadership wants to enter new business segments.
KDC announced that $33 million would be used to buy more shares in the National Company for Vegetable Oils, Aromas and Cosmetics of Viet Nam (Vocarimex).
Another $15 million will be invested in building noodle brands and infrastructure, $12 million in the coffee business and $14 million in expanding the cold chain distribution.
The company will keep a war chest of $176-210 million for possible acquisitions and partnerships and $190-224 million for a share buyback programme.
An overwhelming 93 per cent of shareholders said yes for buying back 30 per cent of the company's shares.
Viet said the first noodle products have been introduced in the market and the early feedback has been good.
The company has appointed distributors and sellers in 54 out of the country's 63 provinces and cities.
Premium noodle products would hit the market next June, and Kinh Do hopes to grab a 10 per cent noodle market share by 2017.