Gemadept (GMD) Divests Entire 26.56% Stake in Food Union Corp (FCC) for VND 51B

Overview

Gemadept Corporation (HOSE: GMD) completed the full divestment of its 26.56% stake in affiliate Food Union Corporation (UPCoM: FCC) on April 10, 2026, receiving nearly VND 51 billion. The transaction occurs as FCC, which has halted its core food production business, prepares to delist due to non-compliance with public company requirements.

Key Facts

• Gemadept sold its entire 1.6 million shares in FCC, reducing its ownership from 26.56% to 0%.
• The transaction value was nearly VND 51 billion, executed via negotiated transfer.
• The shares were acquired by two individual investors on April 10, 2026: Mr. Đặng Trường Giang (16.67% stake) and Ms. Lê Thủy Tiên (9.89% stake).
• FCC reported 2025 net revenue of only VND 9 billion and net profit of VND 808 million, with accumulated losses exceeding VND 56 billion as of 2024.
• FCC has been under trading restrictions by the Hanoi Stock Exchange since March 2023, with trading permitted only on Fridays.
• FCC shareholders approved a resolution to delist in late 2025 due to failure to meet public company conditions.
• FCC’s core food and beer production operations have completely ceased; current revenue derives solely from leasing land for warehouses and kiosks in Hanoi.

What Happened

According to a company filing, Gemadept Corporation sold its entire 1.6 million-share stake in Food Union Corporation on April 10, 2026, via a negotiated transfer. The divestment, which reduced GMD’s ownership from 26.56% to zero, generated proceeds of nearly VND 51 billion. The shares were purchased immediately by two individual investors, Mr. Đặng Trường Giang and Ms. Lê Thủy Tiên, who became major shareholders of FCC.

The transaction aligns with FCC’s deteriorating operational and financial position. The company has halted all core food and beer production, with its 2025 revenue of VND 9 billion coming solely from land leasing. FCC reported a net profit of VND 808 million in 2025, insufficient to offset accumulated losses exceeding VND 56 billion. Due to these challenges, FCC shareholders approved a delisting resolution in late 2025, and the Hanoi Stock Exchange had already imposed trading restrictions in March 2023, limiting transactions to Fridays.

Market Context

Gemadept (GMD) trades on the Ho Chi Minh Stock Exchange (HOSE) and closed at VND 75 on April 15, 2026, with a slight gain of 0.40% on volume of 993,400 shares. The divestment in FCC, a non-core affiliate in the consumer staples sector, represents a strategic portfolio adjustment for GMD, a logistics-focused company. The transaction provides liquidity from an asset that has faced significant operational constraints and regulatory scrutiny.

Strategic Significance

For Gemadept, the divestment represents a clean exit from a non-strategic, underperforming investment, allowing management to reallocate capital toward core logistics operations or debt reduction. FCC’s cessation of core production, minimal revenue, and path to delist reduce its long-term value as a strategic partner. The transaction also mitigates potential reputational or financial contagion risk from FCC’s public company compliance issues and accumulated losses.

What to Watch

• Gemadept’s Q2 2026 earnings release to confirm the use of the VND 51 billion proceeds.
• FCC’s official delisting application and timeline from the State Securities Commission.
• Any further divestments by Gemadept in other non-core affiliates to assess portfolio streamlining.
• Operational updates from FCC’s new major shareholders regarding land development plans in Hà Đông and Chương Mỹ.