Lotte to sell entire stake in Vietnamese bakery manufacturer Bibica

Khanh Minh Friday | 12/25/2020 10:33

Photo: VnExpress

South Korean Lotte, which has invested in Bibica since 2008 as a strategic investor, registered to sell entire stake, or 44.03 percent of shares in the Vietnamese firm, according to exchange filing.

Lotte Corporation could earn VND400 billion ($17 million) from selling nearly 6.8 million BBC shares. The transaction will be carried out through order matching or agreement. The expected trading time is between December 29, 2020 and January 27, 2021, according to statement.

Initially, Lotte invested in Bibica as a strategic investor holding 30 percent stake. It gradually raised holding to 44.03%. BBC shares were traded at VND58,000 ($2.5) apiece on December 24, up 18 percent from the past month.

Bibica’s largest shareholder is PAN Food Company, a member of The PAN Group (HoSE: PAN), holding 50.07 percent of Bibica stake.

In the first nine months of 2020, Bibica reported VND59 billion ($2.5 million) profit, up 34 percent from a year earlier.

Lotte had expressed intention to acquire Bibica, creating an internal battle that made the business activities of the Vietnamese bakery manufacturer unstable. The case was halted after The PAN Group bought Bibica shares and balance the power with Lotte in the firm.

It is expected that PAN will be a buyer Bibica shares sold by Lotte. PAN has invested a lot of resources in building Bibica's brand and distribution chain.

In October 2019, PAN invested more than VND1,000 billion ($43 million) to build the largest confectionery factory in the region for Bibica.