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Viet Long Securities buys 24% stake in Tuong An

Released at: 07:50, 13/07/2016

Viet Long Securities buys 24% stake in Tuong An

Photo: Duc Anh

Investment fund buys shares from Vocarimex in vegetable oil company for $12.6 million.

by Duy Anh

The Viet Long Securities Investment Fund Management Corporation (VLFM) has purchased 4.55 million shares in the Tuong An Vegetable Oil Company (TAC), equal to a 24 per cent stake, from the Vegetable Oils Industry Corporation (Vocarimex).

The sale was completed on July 4 for VND278 billion ($12.6 million), according to the Ho Chi Minh City Stock Exchange (HSX). Vocarimex’s holding in TAC is now 27 per cent.

The CEO of VLFM is Mr. Nguyen Mien Tien. His brother, Mr. Nguyen Mien Tuan, is Deputy Chairman of the Board at Viet Dragon Securities Corporation (VDSC). Mr. Tran Le Nguyen, CEO of the KIDO Group Corporation, is also Chairman of VDSC’s Board.

KIDO previously confirmed with VET that it would increase its stake in Vocarimex to 51 per cent in the second half of this year.

The Singaporean-based Wilmar International announced on July 5 that it would buy 45 per cent of Bunge Ltd’s oilseed crushing factory. Bunge is Vietnam’s largest producer of soybean oil, the world’s largest palm oil processor, and one of the largest soybean buyers, and aims to strengthen its presence in Vietnam’s cooking oil market.

Calofic, in which Wilmar holds a 76 per cent stake, is the leader in Vietnam’s cooking oil market with a 37 per cent market share. It reported total 2015 revenue of VND11 trillion ($493 million), three times higher than its nearest competitor, TAC. Calofic has won the trust of a wide range of customers with its famous brands, including Neptune, Simply and Meizan.

With KIDO aiming to cooperate with Vocarimex and with Wilmar’s strategic deal, the country’s cooking market is set to see fierce competition.

TAC is the second largest cooking oil company of Vietnam, with a 22 per cent market share. It reported total 2015 revenue of VND3.6 trillion ($161.3 million).

Other than TAC, Vocarimex also has three vegetable oil joint ventures: Golden Hope-Nha Be Edible Oils Company the North Oils & Fats Industries Company (Nortalic), and Calofic.

Vietnam’s cooking oil market now has 40 companies producing and selling cooking oil products, 70 per cent of which are palm oil, 23 per cent soy bean oil, and 7 per cent vegetable oil, according to data from the Ministry of Industry and Trade.

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