Vinamilk greenlighted to remove foreign ownership limit

July 22, 2016 | 13:03

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The State Securities Committee (SSC) has agreed with Vietnam Dairy Products Joint Stock Company (VNM)’s proposal to increase its foreign ownership limit to 100 per cent.

The SSC’s decision made Vinamilk’s shares rise by VND5,000 ($0.22) to VND158,000 ($7.04) per share at the end of the transaction session on July 20, which is the highest since the company was listed on the stock exchange.

SSC required Vinamilk to scrutinise its business activities in the real estate and trucking sectors to ensure compliance with regulations.

Previously, the company’s Board of Directors decided to remove the 49 per cent foreign ownership limit after the shareholders’ meeting on May 21, without requesting the shareholders’ approval.

At the same time, Vinamilk decreased the criteria for choosing foreign investors to create more favourable conditions in the approaching large government stake divestment.

The scrapping was backed by the two largest shareholders, State Capital Investment Corporation (SCIC) (45 per cent), a sovereign fund, and F&N Dairy Investment (11 per cent), which is controlled by Thai beer tycoon Charoen Sirivadhanabhakdi.

Vinamilk currently owns 25 subsidiaries and 13 dairy production factories, employing a workforce of over 6,000 people throughout Vietnam. The company’s products are present in more than 40 countries over the world. In addition, the company holds a 22.8 per cent stake in Miraka factory in New Zealand, 100 per cent in Driftwood Dairy Holding in the US, and 51 per cent of Angkor Dairy Products Company in Cambodia.

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