Recently, the State Securities Commission (SSC) issued Decision No. 335/QĐ-XPHC regarding administrative penalties for securities violations against Kido Group Joint Stock Company (Stock Code: KDC, HoSE). The company was fined VND 65 million for failing to disclose information within the legally mandated timeframe. Specifically, Kido did not timely submit reports on the use of bond proceeds for audited bonds with outstanding debt in 2023 and the first half of 2024 on the Corporate Bond Information Portal of the Hanoi Stock Exchange (HNX).
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Additionally, Kido was fined VND 175 million for inaccurate disclosures. In its reports on the use of bond proceeds from December 14, 2020, to December 31, 2022, and from January 1, 2023, to June 30, 2024, audited by A&C Auditing and Consulting LLC, Kido stated that it had fully utilized VND 1,000 billion for production, business operations, and edible oil, as well as for capital contributions to Vibev Food and Beverage Joint Venture Company. However, according to the documents provided, Kido did not use the proceeds to invest in Vibev.
In addition to the fines, Kido must rectify the situation by either retracting or correcting the inaccurate information, as stipulated in Clause 6, Article 42 of Decree No. 156/2020/NĐ-CP, amended by Clause 33, Article 1 of Decree No. 128/2021/NĐ-CP. The total administrative penalty imposed by the SSC amounts to VND 240 million.
In other developments, Kido recently announced a resolution to seek a partner for the transfer of a 49% stake in Kido Frozen Food Joint Stock Company (KDF). KDF currently has a charter capital of VND 741.6 billion, with Kido holding 49%, equivalent to 36.33 million shares, accounted as an associate company. Kido aims to sell this entire 49% stake for an estimated VND 2,500 billion.
The KDC Board of Directors has authorized the CEO to actively search for potential buyers, engage with investment funds, securities firms, and brokers, and negotiate the terms of the transaction.
In July 2022, KDF underwent equitization and increased its charter capital from VND 541.6 billion to VND 741.6 billion. Post-equitization, Kido’s ownership in KDF decreased from 100% to 73.03%, corresponding to 54.16 million shares.
Subsequently, Kido transferred 24.03% of KDF’s shares to Nutifood Nutrition Food Joint Stock Company, reducing its ownership to the current 49%. Nutifood later acquired additional shares from other shareholders, increasing its stake to 51% in September 2024, thereby becoming KDF’s parent company.
KDF originally managed Kido’s brands, including Celano and Merino. However, before reducing its stake in KDF, Kido transferred these key brands back to its own portfolio.
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