BKD is valued at more than VND9,808 billion. KDC will make its first share transfer to Mondelez amounting at 80% value of Kinh Do Binh Duong including the mooncake segment.

Kinh Do Corporation - Kinh Do (KDC) has just revealed the resolution of November 10th 2014 by the Board of Directors on the approval of foreign investment in BKD which to be submitted to the extraordinary General Meeting in 2014. Specifically:

The Board of Directors submits to the General Shareholders Meeting to approve Mondelez or its subsidiaries designated as Cadbury Enterprises Pte. Ltd. "CEPL" – a foreign company to make an investment in Kinh Do Binh Duong (BKD) through the transfer of shares which KDCowns in BKD to foreign investors immediately after completion of the restructuring plan, as stated in the resolution of the 2014 annual General Shareholders Meeting.

KDC transfers 80% its stake in BKD to foreign investors. The first transfer and the option to buy BKD’s remaining shares at the same transfer price are applicable to each share as in the first transfer. Foreign investors may exercise the option to buy soonestwithin 12 months from the date of completion of the first transfer.

Pre-tax transfer price is estimated at nearly VND7,846.9 billion for 80% of BKD’s shares and more than VND1,961.7 billion for the remaining BKD’s 20% shares in the case foreign investors exercise their option to buy. 100% of BKD’s shares are valued at more than VND9,808 billion. This price is exclusive of cash, receivable accounts and credit obligation and depends on specific adjustments.

KDC has pre-emptive rights in case the foreign investor decide to sell any of BKD’s shares before foreign investors perform their option to buy or KDC exercises its option to sell, along with the terms of an option to buy from a third party.

Thus, along with additional investment to raise the ownership in Vocarimex to more than 51% and a transfer of 80% the confectionery business to Mondelez, the upcoming extraordinary General Meeting is crucially significant, forming the KDC’s future after over-20-year development. 

By Thanh Giang 

Infonet (CafeF)