Vegetable oil products of Tuong An on shelves. — File Photo

HA NOI (Biz Hub) — Confectionary giant Kinh Do Corporation (KDC), listed on the HCM City Exchange, wants to acquire 65 per cent stake in Tuong An Vegetable Oil (TAC) from the latter's existing shareholders.

In a document sent to TAC's board of directors on September 1, KDC said the decision to acquire a stake in TAC was based on the vegetable oil producer's development potential and KDC's investment strategy.
According to estimates, KDC will have to spend some VND780 billion (US$34.8 million) to acquire 65 per cent stake in TAC. KDC's cash balance is currently at more than VND3.5 trillion.

KDC holds 24 per cent of Viet Nam Vegetable Oil Industry Corporation (Vocarimex) and plans to increase its holding at Vocarimex to 51 per cent. Recently, Vocarimex cut its stake in TAC from 51 per cent to 27 per cent.

Not long ago, two members of TAC's board of directors, Duong Anh Tuan and Truong Huynh Bich, applied to resign from their positions.

TAC plans to hold an extraordinary shareholder meeting on October 6 with regard to approving the resignations and selecting new members for the remaining years of the 2012-17 term.

At the end of the morning trading session, shares of TAC were up 6.3 per cent, while KDC closed 0.5 per cent higher. — VNS