Cholimex is one of the dominant players in the domestic chilli sauce market. — VNS Photo

HA NOI (Biz Hub) — Nearly 70 per cent of Cholimex Food's shareholders voted against seating a representative from Masan Food onto the company's board of directors, Cholimex announced on its website on May 12.

After the 2015 general shareholders meeting last month, Chilli sauce manufacturer Cholimex Food Joint Stock Company announced that only 32.91 per cent of the shareholders voted in favor of Masan Foods, while 67.09 per cent voted against allowing a Masan member onto its board.

Last year, Masan Food, a leading food product firm in Viet Nam, announced its intention to purchase a 49 per cent stake in Cholimex Food Joint Stock Company. However, two of Cholimex's largest shareholders declared that they would not sell their shares.

As a result, Masan was only able to purchase 2.66 million shares, or a 32.84 per cent stake in Cholimex Food, which then became one of its associated companies.

While most shareholders did not vote for Masan to take a seat on the Cholimex director board, 100 per cent voted in favor of other plans proposed for future Cholimex business activities, as well as profit distribution, salaries and bonuses for company employees in 2015.

Cholimex Food planned to reach revenues of 1.26 trillion (US58.3 million) in 2015, an increase of 18.3 per cent over 2014. It also seeks to earn total profits of VND54 billion ($2.5 million), a year-on-year increase of 7.89 per cent over 2014. The company further set a goal of distributing a dividend of 20 per cent to its shareholders.

Established in 1983 in HCM City, Cholimex has total assets of VND 408.5 billion ($19.17 million) and is one of the dominant players in the domestic chilli sauce market.

In 2014, Cholimex Food Joint Stock Company reported net revenues of over VND1 trillion (US$46.9 million) for 2014, reflecting an increase of 19 per cent from one year ago. It also earned a pre-tax profit of VND50 billion ($2.3 million), indicating a year-on-year jump of 18 per cent, being 7 per cent above its target.

Masan Group is based in HCM City and operates in consumer goods, mineral resources and banking.

As one of the leading food producers, Masan Consumer owns some of the most recognized and trusted consumer brands, such as Chin-Su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafé, Wake Up, Kachi and Vinh Hao.

Before buying stakes from Cholimex Food, Masan attempted to dominate the local food sector by purchasing stakes in beverage companies such as Vinacafe Bien Hoa, Vinh Hao mineral water and Phu Yen Beer.

Most recently, it entered the animal feed and husbandry sectors, seeking to lead and serve the growing US$1-billion animal feed sector in Viet Nam.

On May 13, shares of Masan were listed at VND80,000 ($3.6) on the HCM City Stock Exchange. After selling a stake to Masan Food in late 2014, Cholimex left the local stock market since it no longer had 100 shareholders, as required by market rules.— VNS