<article>Vietnamese co PAN Food, a subsidiary of <a style="color: #000080;" href="http://www.panpacific.vn/">Pan Pacific Corporation</a>, will be increasing its stake in local food and beverage firm <a style="color: #000080;" href="http://www.bibica.com.vn/">Bibica</a> to 21.13 per cent, within days of it having acquiring a 15 per cent stake in the company.</article>

Vietnamese co PAN Food, a subsidiary of <a style="color: #000080;" href="http://www.panpacific.vn/">Pan Pacific Corporation</a>, will be increasing its stake in local food and beverage firm <a style="color: #000080;" href="http://www.bibica.com.vn/">Bibica</a> to 21.13 per cent, within days of it having acquiring a 15 per cent stake in the company.
Through this transaction, and the current holdings of seafood processor Aquatex Ben Tre, another subsidiary of Pan Pacific Corporation, Bibica has become an affiliate company of the corporation.
However, the value of the expected purchase was not revealed.
Also read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/pan-pacifics-ma-mov-2322/" target="_blank">PAN subsidiary acquires Southern Seed Corp</a>
The 15 per cent PAN Food acquired represents 2.31 million Bibica shares from the batch of 3.08 million units sold by SSI Asset Management.
Pan Pacific Corporation and <a style="color: #000080;" href="https://www.ssi.com.vn/">SSI Asset Management</a> are linked to Nguyen Duy Hung, who is chairman in Pan Pacific  Corporation and SSI Asset Management’s parent company Saigon Securities Inc.
Hung’s name is heavily linked to Bibica’s shareholding. He is the CEO of Duong Mat Troi Investment, which has 13.5 per cent in Bibica while <a style="color: #000080;" href="http://aquatexbentre.com/">Aquatex Bentre</a> is holding 3.45 per cent.
Aquatex Bentre has just divested a 5 per cent stake from the food and beverage firm.
Bibica’s current biggest shareholder is <a style="color: #000080;" href="http://www.lotteconf.co.kr/eng/">Lotte Confectionery</a>, a South Korean investor, owning 44 per cent. While Lotte’s stakeholding in Bibica has grown, the Vietnamese shareholders have also gradually reduced their ownership.
Although the deal between SSI Asset Management and PAN Food is seen as an “internal trading”, the combined stake of Hung-related companies has witnessed significant reduction.
Hung’s asset management company sold 20 per cent of Bibica, but PAN Food purchased only 15 per cent. Meanwhile, Duong Mat Troi Investment’s holding rate of 13.5 per cent is the result of a sale of over 1.17 million shares in November.
Bibica CEO Truong Phu Chien gave one of Asia’s strongest confectionery companies Lotte a nod to partnership in 2007, which years later the company head realised was a mistake. “When co-operating with Lotte, we thought it would be a comprehensive partnership in terms of management expertise, technology and export support, but the Korean investor apparently wants our company to be its subsidiary,” Chien said.
It was Chien’s shareholding Lotte pushed to acquire more in the Vietnamese producer in 2013.
In that same year, Hung’s companies also stepped up investments in Bibica and saved the company from a possible takeover. Since then, Bibica’s operation has improved. Its revenue last year was estimated at nearly VND1.13 trillion ($53 million), up 7 per cent, and profit rose 29 per cent to VND57 billion ($2.67 million).
Also read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/ifc-invests-6-5m-vietnams-pan-pacific-2281/">IFC invests $6.5m in Vietnam’s Pan Pacific</a>
Hung returned to serve as Pan Pacific Corporation chairman in 2013 after a 10-year absence and has since driven the company to become a leading business in the agricultural and food processing sectors not only in Vietnam but also in the Southeast Asian region. Its latest corporate move involves a purchase of 21.4 per cent in Southern Seed Corporation.
During the past six months, Bibica shares have fluctuated. It closed flat at VND53,500 ($2.5) in today’s session. Pan Pacific Corporation, meanwhile rose 0.2 per cent to VND40,200 ($1.9).

Vietnamese PAN Food, a subsidiary of Pan Pacific Corporation, will increase its holding in local food and beverage firm Bibica after acquiring a 15 per cent

Exclusive: PAN Food increases stake in Bibica to 21%

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Exclusive: PAN Food increases stake in Bibica to 21%

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