Kido wants to sell all 49% of KidoFoods capital

VHO - Kido Group Corporation (stock code: KDC) has just announced unusual information about its policy of seeking partners to transfer 36.3 million shares, equivalent to 49% of charter capital at Kido Frozen Food Corporation (stock code: KDF) - the capital currently held by Kido.

Kido plans to transfer all of these shares at a maximum value of about VND2,500 billion. Illustrative photo

According to the Board of Directors' Resolution, Kido plans to transfer all of these shares at a maximum value of about VND 2,500 billion, equivalent to a valuation of more than VND 68,000/share. This figure is significantly higher than the price of VND 46,800/share of KDF at the time of canceling trading registration on UPCoM to merge into Kido.

Kido's Board of Directors authorized the General Director to proactively seek partners, work with investment funds, securities companies, brokerage organizations, and negotiate and decide on terms related to this deal.

Previously, in 2023, Kido sold 24.03% of its capital at Kido Foods, reducing its ownership ratio to 49%, thereby converting Kido Foods from a subsidiary to an associate. The transaction was worth VND1,069 billion, equivalent to a business valuation of about VND4,450 billion (USD200 million), but the buyer was not announced.

By September 2024, Nutifood officially announced its ownership of 51% of Kido Foods shares, becoming the parent company and taking control of this enterprise.

However, just 3 months later, Kido’s Board of Supervisors proposed that the General Meeting of Shareholders (GMS) consider KDF’s continued use of the Celano and Merino brands – brands owned by Kido. The Group believes that this is an important issue that needs to be discussed and voted on to protect Kido’s legal rights.

At the extraordinary general meeting of shareholders, more than 89% of shareholders attending did not approve the sale of more than 24% of KDF shares of Kido Group. Shareholders also authorized the Board of Directors to decide all terms related to the transaction, including contracts, agreements, amendments or termination of the transaction.

In addition, shareholders also did not approve the transfer of the two brands Celano and Merino, along with 34 related brands, in order to maintain brand ownership within the group, ensure the value of intangible assets, as well as protect the legitimate interests of shareholders and the Kido brand.

Source: https://baovanhoa.vn/kinh-te/kido-muon-ban-het-49-von-kidofoods-178161.html