The Cau Tre Export Goods Processing JSC is seeking shareholder approval for CJ CheilJedang, the food subsidiary of South Korea’s CJ Group, to purchase shares from major shareholders and become its strategic partner.

An extraordinary general meeting of shareholders (EGM) will be held on December 2, the company said.

CJ CheilJedang is seeking agreement from Cau Tre’s shareholders to purchase shares from Transwell Enterprises, which holds 37.22 per cent, Vietnam Investment Fund, with 10 per cent, and the Song Da Corporation, with 0.11 per cent. The total purchase would be approximately 47.33 per cent of voting rights and be based on agreement, not public bidding.  

Cau Tre’s Board of Directors will ask the EGM to approve CJ CheilJendang’s proposal and become its strategic partner. The South Korean company also proposed taking seats on Cau Tre’s Board of Directors.

Mr. Chang Bok Sang, Chairman and CEO of CJ Vietnam, Mr. Roh Woong Ho, Mr. Kim Jung Ho, and Mr. Park Young Ju have been nominated for the Board seats, replacing Ms. Dang Pham Minh Loan, Mr. Le Thanh Hao Nhien, Mr. Tran Bao Minh and Mr. Le Xuan Dong. The Supervisory Board may also change, with Mr. Kim Se Won being nominated to replace Ms. Pham Thi Thuy. Elections will be conducted at the EGM on December 2.

After failing in its bid for Vissan, a Vietnamese State-owned food processor, in March the CJ Group then moved to purchase the Cau Tre shares. It plans to pour another $500 million into Vietnam via direct investment and M&A, including in food, retail and entertainment.

CJ Vietnam took over Ong Kim’s in January, a popular brand of kimchi in Vietnam. It was originally established by another South Korean company in 2005 and recorded sales of $2.26 million last year, producing kimchi tailored to Vietnamese tastes.

Formerly the Cau Tre Enterprise, Cau Tre was established in 1982 with operations on an area of nearly 80,000 sq m, with production plants covering more than 30,000 sq m and using modern equipment. Its products are diverse and plentiful, made from raw materials and agricultural products and sold nationwide through supermarkets and distribution agents. Its products have also been exported to many countries around the world, such as Japan, South Korea, Taiwan, Hong Kong, Germany, Italy, Switzerland, the Netherlands, Spain, Portugal, the US, and Canada.

In the second quarter of this year its revenue reached VND334 billion ($14.9 million) and pre-tax profit VND1.2 billion ($60,000), equal to half of the same period last year. In 2015 it saw VND743 billion ($35.2 million) in revenue, including export revenue of VND485 billion ($21.5 million). Pre-tax profit was VND8 billion ($360,000). Its biggest shareholder is the Saigon Trading Group (Satra), which holds 45 per cent.

VN Economic Times