Shareholders of Kido Group (KDC), a leading Vietnamese food and cooking oil producer, have voted against a proposal to sell over 24% of its ownership stake in subsidiary Kido Foods and to transfer the Celano, Merino, and KIDO trademarks.
The decision came during the company’s Extraordinary General Meeting of Shareholders (EGM) held in Ho Chi Minh City on Friday. The proposal was met with significant opposition following extensive discussions.
Chairman Tran Kim Thanh explained that a board resolution dated January 17, 2023, had aimed to reduce Kido Group’s stake in Kido Foods from 73% to 49%, thereby converting Kido Foods from a subsidiary into an affiliate. This plan was put forward for shareholder approval, as current Vietnamese corporate laws and the company’s charter did not explicitly address such a shift.
Thanh emphasized the importance of strong brand management in driving long-term success, urging shareholders to weigh the potential long-term effects of altering the company’s brand strategy.
Concerns were raised by Star Pacifica Pte. Ltd., a foreign investor holding more than 20 million shares of KDC. The firm voiced strong opposition to the proposed sale of the 24% stake in Kido Foods, despite acknowledging that the transaction was within the board’s authority. Star Pacifica, which has been a significant investor in Kido Group for five years, argued that the sale could negatively affect shareholder interests, especially given Kido Group’s leadership in the ice cream industry. The investor urged the board to reconsider the decision in order to protect the value of shareholders’ investments.
In the vote, 89% of shareholders rejected the proposed sale. However, the shareholders granted the board the authority to finalize related agreements, including contracts and amendments tied to the deal.
This vote follows the earlier successful sale of a 24% stake in Kido Foods for nearly VND1.07 trillion ($42.66 million). After the transaction, Kido Foods ceased to be a subsidiary of Kido Group and became an affiliate.
In a separate development, Nutifood Nutrition Foods JSC completed procedures in September 2024 to acquire a 51% stake in Kido Foods.
Regarding the trademark transfer, shareholders decided to retain ownership of the Celano, Merino, and Kido trademarks, along with 34 other related trademarks and brands, within Kido Group.
In a related legal matter, the People’s Court of Ho Chi Minh City issued an emergency injunction on January 17, 2024, barring Kido Foods and Dat Viet Media from using or promoting the Celano trademark. This ruling followed a request from Kido Group to prevent the companies from showcasing the trademark in television shows and on social media platforms.
Kido Group, listed on the Ho Chi Minh Stock Exchange (HoSE) under the ticker symbol KDC, closed trading on Friday at VND58,700 ($2.3) per share.
