Daesang Corporation, a major producer of consumer foods and additives in South Korea, has been in talks to buy a stake in Duc Viet Food JSC, news website VnExpress reported Thursday, quoting an unnamed source from the Vietnamese company.
The source did not reveal how much stake Daesang will buy, but since last month international and local media have quoted Korean newswires as saying that it will buy 13 million shares, or a 99.99 percent stake, at 37.52 billion won (US$33 million).
The deal, which will reportedly be wrapped up next month, will help Daesang expand its business in Vietnam, which it entered in 1994 and has since specialized in monosodium glutamate and seasoning powder.
One of the three top sausage producers in Vietnam with state-controlled Vissan and Thailand's CP, Duc Viet reported revenues $27.27 million and a net profit of $1.75 million last year, according to figures from Daesang.
The 16-year-old company's assets are worth an estimated $14.07 million.