Lotte & Bibica
General
Lotte Confectionery, a Korean company, has invested in Bibica Corporation, a Vietnamese company, since 2007. After five years of cooperation, this business relationship reveals several conflicts which burst out and remain unsolved since 2012.
Bibica Corporation
Bibica Corporation is a Vietnamese company, established in 1999 and operates in confectionery manufacturing industry. The company has been listed in Hochiminh Stock Exchange since December 2011. Nowadays, Bibica is one of three largest confectionery manufacturers and distributors in Vietnam, who acquire 42% domestic market share in total. In addition, Bibica is expanding its market internationally by setting foothold in Cambodia and Laos as the first step.
Lotte Confectionery
Lotte Confectionery, founded in 1967, is a giant of confectionery industry in Korea and in Asia. Its headquarters is located in Korea, whilst its manufacturing is based in Russia, India, China and Vietnam. At present, more than 200 Lotte products are present all over Asia and Europe.
At end of 2007, Lotte Confectionery became Bibica’s strategic partner after purchasing 4.6 million shares, which reflected 30% holding of Bibica. Besides, as stated in mutual agreement, Lotte would assist Bibica in technology, market research and marketing, sales, construction of second manufacturing chain in Binh Duong province, as well as exporting Bibica products to Korea. In return, Bibica would manufacture Lotte products to export to Korea and act as a distributor of Lotte in Vietnamese market.
As at 29 November 2013, Lotte possessed 43.56% of Bibica stocks, which made it the biggest shareholder. Additionally, Lotte representatives are holding important managing positions in Bibica, including Chairman of Board of Directors and Chief Financial Officer.
The issue
Since 2012, a rumor that Lotte aims to acquire Bibica is passed through all investors in the stock market. From 2012 to the beginning of 2013, Lotte purchased an addition of
Lotte Confectionery, a Korean company, has invested in Bibica Corporation, a Vietnamese company, since 2007. After five years of cooperation, this business relationship reveals several conflicts which burst out and remain unsolved since 2012.
Bibica Corporation
Bibica Corporation is a Vietnamese company, established in 1999 and operates in confectionery manufacturing industry. The company has been listed in Hochiminh Stock Exchange since December 2011. Nowadays, Bibica is one of three largest confectionery manufacturers and distributors in Vietnam, who acquire 42% domestic market share in total. In addition, Bibica is expanding its market internationally by setting foothold in Cambodia and Laos as the first step.
Lotte Confectionery
Lotte Confectionery, founded in 1967, is a giant of confectionery industry in Korea and in Asia. Its headquarters is located in Korea, whilst its manufacturing is based in Russia, India, China and Vietnam. At present, more than 200 Lotte products are present all over Asia and Europe.
At end of 2007, Lotte Confectionery became Bibica’s strategic partner after purchasing 4.6 million shares, which reflected 30% holding of Bibica. Besides, as stated in mutual agreement, Lotte would assist Bibica in technology, market research and marketing, sales, construction of second manufacturing chain in Binh Duong province, as well as exporting Bibica products to Korea. In return, Bibica would manufacture Lotte products to export to Korea and act as a distributor of Lotte in Vietnamese market.
As at 29 November 2013, Lotte possessed 43.56% of Bibica stocks, which made it the biggest shareholder. Additionally, Lotte representatives are holding important managing positions in Bibica, including Chairman of Board of Directors and Chief Financial Officer.
The issue
Since 2012, a rumor that Lotte aims to acquire Bibica is passed through all investors in the stock market. From 2012 to the beginning of 2013, Lotte purchased an addition of