<article>South Korean food company CJ CheilJedang is planning to buy a major minority stake of Vietnamese peer Cau Tre, after failing to acquire shares of <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/vissan/">Vissan</a> eight months earlier.</article>

South Korean food company CJ CheilJedang is planning to buy a major minority stake of Vietnamese peer Cau Tre, after failing to acquire shares of <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/vissan/">Vissan</a> eight months earlier.
CJ CheilJedang will purchase a total of over 47.3 per cent from Cau Tre’s three existing shareholders, Transwell Enterprises Limited (an affiliate of <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/vinacapital/">VinaCapital</a>), VietFund Management and state-owned industrial group Song Da Corporation, the Vietnamese company said in an announcement dated November 22.
The transaction will be conducted through negotiation between the investors. No public offer will be made.
Transwell Enterprises currently owns 37.33 per cent in Cau Tre, Vietfund holds 10 per cent, while Song Da has a modest stake of 0.11 per cent.
Cau Tre’s current largest shareholder is the Saigon Trading Group, which is holding 45 per cent. Once the acquisition by CJ CheilJedang is done, the Korean company will become the largest shareholder and strategic investor in Cau Tre.
In conjunction with the deal, executives from CJ CheilJedang will join the board of Cau Tre. Chang Bok Sang, chairman cum CEO of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=vietnam+cj">CJ Vietnam</a>, as well as two other CJ CheilJedang officials will have seats at the managing board, while one chair in the supervisory board will also be replace by a person from the Korean firm.
“For the purpose of raising fund and calling for operation experience from external investors, the company welcomes large investors to help build the company as the top business in the food processing industry,” Cau Tre said in the announcement.
It will hold an extraordinary shareholder meeting on December 2 to seek approval for the tenders.
CJ CheilJedang has determined that Vietnam is an important market in its global expansion path, the statement added.
In March, CJ Vietnam purchased 4.18 per cent of the Vietnam Meat Industries (Vissan) reportedly for $13.3 million during its IPO auction. However, the Korean major failed to acquire further a 14 per cent stake over to Vietnamese conglomerate<a style="color: #000080;" href="http://www.dealstreetasia.com/tag/masan-group/"> Masan Group</a>.
CJ Vietnam chairman Chang Bok Sang at the same time said the company will consolidate its presence in Vietnam through a $500 million M&amp;A activity, with a focus on the food sector.
Earlier in January, it acquired a smaller food processor named Ong Kim.
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CJ CheilJedang is planning to buy a major minority stake of Vietnamese peer Cau Tre, after failing to acquire shares of Vissan eight months earlier.

Korea's CJ CheilJedang to acquire 47.3% in Vietnamese food firm

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Korea's CJ CheilJedang to acquire 47.3% in Vietnamese food firm

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