Confectionery firm KIDO backs out of $45.1mln deal with DongA Bank: report

Thanh Nien News

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 DongA Bank's headquarters in Ho Chi Minh City. Photo credit: Saigon Times Online
KIDO Corporation's plan to buy 100 million shares at VND10,000 (45 cents) each from DongA Bank has stalled, as the confectionery giant found the bank's financial condition having "too many problems", news website Saigon Times Online reported Monday.
Several individual investors who joined KIDO, a joint-venture between Vietnam's Kinh Do Corporation and US's Mondelēz International, in negotiating the deal too dropped their plan, the website quoted an unnamed source as saying.
DongA Bank revealed the deal last month, saying it that it will help the bank raise its charter capital from VND5 trillion to VND6 trillion ($225.8-270.9 million).
The 16th largest among Vietnam's 33 partly private lenders by assets, DongA reported a year-on-year decline of 92 percent in its net profits to around VND26.9 billion ($1.2 million) last year.
As of December 31, its bad debt has piled up nearly VND1.95 trillion ($88 million), or 3.76 percent of loans.

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