Hard to realise Bibica trademark
The company’s name will be changed into Lotte-Bibica Joint Stock Company when a plant in the northern province of Hung Yen is built, Bibica Chairman Jung Woo Lee, said at the firm’s shareholder meeting on March 24.
According to several Vietnamese shareholders, with a current ownership of 38% and chairmanship, Lotte is gradually increasing its power in Bibica.
Lotte’s plans to take over Bibica were developed several years ago. It took the first step by buying 4.6 million shares or 30.15% stake in Bibica in 2007.
A year later, the South Korean firm increased its ownership in Bibica by 5.5% to 35.65%.
Its current stake in Bibica has reached 38% with the rest scattered among a lot of Vietnamese shareholders.
Despite having yet to reach the maximum 49% stake allowed in Bibica, Lotte is managing the entire technology and development strategies as well as chairmanship in the company.
Two Lotte officials currently hold the most important positions in Bibica, including chairman of board of directors and financial manager.
“Lotte’s purchase of Bibica’s shares is the fastest and the most effective way for it to enter the Vietnamese confectionery market. The move will create a firm foundation for Lotte to develop its distribution network, production facilities and trademark,” a Bibica shareholder admitted.
Currently, Bibica is the second biggest confectionery producer in Vietnam by productivity after Kinh Do.
With one plant in the southern province of Bien Hoa and another in Hanoi’s Gia Lam District, the company produces around 15,000 tonnes of confectionery per year.