Kido Group (KDC) Plans Treasury Buyback of 14.5M Shares, Restructures Edible Oil Unit

Overview

Kido Group (KDC, HoSE) has approved a plan to buy back up to 14.49 million treasury shares, representing 5% of outstanding shares, at a price range of 40,000 to 70,000 VND per share. The buyback, funded from share premium, is intended to reduce charter capital and protect existing shareholders. Separately, KDC proposes a major restructuring of its edible oil subsidiaries, positioning Tuong An as the parent company, with a view to an eventual IPO and listing on HoSE.

Key Facts

• KDC plans to repurchase up to 14.49 million shares (5% of outstanding) at 40,000-70,000 VND/share.
• Minimum total expenditure for the buyback is approximately 580 billion VND, funded from share premium on the 2025 audited standalone financial statements.
• The buyback period is from Q1 2026 to Q3 2026, pending regulatory approval.
• KDC targets 2026 revenue of 12,000 billion VND and pre-tax profit of 700 billion VND.
• Proposed 2026 cash dividend of 10% (1,000 VND/share), plus a 2025 cash dividend of 10% (approx. 290 billion VND total).
• Restructuring plan: Vocarimex will divest its 26.54% stake in Tuong An; KDC will transfer its stake in Kido Nha Be to Vocarimex or a third party.
• Tuong An will issue shares to KDC, increasing its charter capital from 338.8 billion VND to 3,188 billion VND, with KDC owning 97% and Tuong An owning at least 93% of Vocarimex.
• KDC aims for an IPO and HoSE listing of Tuong An at an appropriate time.

What Happened

Kido Group’s board of directors has passed a resolution to buy back up to 14.49 million treasury shares at a price between 40,000 and 70,000 VND per share, representing about 5% of outstanding shares. The buyback will be executed via order matching and/or negotiated transactions through a securities company, with a timeline from Q1 2026 to Q3 2026, subject to regulatory approval. The company stated the purpose is to reduce charter capital and protect existing shareholders’ interests.

In a separate development, KDC announced the agenda for its 2026 Annual General Meeting (AGM) scheduled for May 28, 2026. The board will present a business plan targeting 12,000 billion VND in net revenue and 700 billion VND in pre-tax profit for 2026, along with a 10% cash dividend proposal. Notably, KDC proposes a comprehensive restructuring of its edible oil subsidiaries, with Tuong An becoming the parent company of the group’s oil business, directly owning and controlling Vocarimex and indirectly Kido Nha Be (through Vocarimex). The plan involves Vocarimex divesting its 26.54% stake in Tuong An, KDC transferring its stake in Kido Nha Be to Vocarimex, and Tuong An issuing shares to KDC to increase its charter capital to 3,188 billion VND. KDC also expressed ambition to conduct an IPO and list Tuong An on HoSE.

Market Context

KDC shares closed at 49,000 VND on April 10, 2026, unchanged from the previous session, with low trading volume of 199,600 shares. The proposed buyback price range of 40,000-70,000 VND per share brackets the current market price, suggesting management views the stock as undervalued at the lower end. The restructuring of the edible oil business comes as KDC seeks to streamline operations and unlock value in its subsidiaries. The consumer staples sector in Vietnam has seen mixed performance amid rising input costs and competitive pressures.

Strategic Significance

The treasury buyback signals management’s confidence in KDC’s financial position and its commitment to enhancing shareholder returns, particularly through capital reduction. The edible oil restructuring is a strategic move to consolidate the group’s oil business under a single listed entity (Tuong An), which could improve operational efficiency, attract foreign investment, and potentially unlock a higher valuation for the oil segment. By making Tuong An the parent company and targeting an IPO, KDC aims to create a pure-play edible oil company with a clearer growth story, while KDC itself may focus on other food and beverage segments. The success of this restructuring will depend on execution, regulatory approvals, and market conditions.

What to Watch

• Regulatory approval for the treasury buyback and the restructuring plan.
• Q1 2026 earnings release to assess KDC’s financial health and ability to fund the buyback.
• Progress of Vocarimex’s divestment of Tuong An shares and KDC’s transfer of Kido Nha Be stake.
• Timing and details of Tuong An’s IPO and HoSE listing application.
• KDC’s 2026 AGM on May 28, 2026, for shareholder votes on the proposals.