Domesco removes foreign ownership limit

September 08, 2016 | 12:59
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On September 6, Domesco Medical Import Export JSC (Domesco) officially removed its 49 per cent foreign ownership limit, according to information published on the company’s website.

On the same day, Domesco’s foreign shareholder CFR International SpA from Chile registered to buy two million shares, equalling a 5.76 per cent stake, to increase its holdings to 51.7 from 45.49 per cent. Domesco’s two foreign shareholders are CFE International SpA and Seutsche Bank Aktiengesellschaf & Deutsche Investment Management Americas Inc., with a 4.89 per cent stake.

Domesco is Vietnam’s third-largest domestic drug maker, with a market capitalisation valued at nearly VND3.3 trillion ($148 million) as of September this year.

This is the third company which the State Securities Commission of Vietnam has allowed to lift the foreign ownership limit, after Vietnam Dairy Product JSC (Vinamilk), the largest listed company, and Everpia Vietnam.

Domesco is the only drug maker that has agreed to remove its foreign ownership limit, while other leading domestic pharmaceutical firms, including Imexpharm (IMP), Traphaco (TRA), and Hau Giang Pharmaceutical JSC (DHG), refusing once again to change the cap.

DHG, Vietnam’s biggest publicly-traded drug maker, declared at its recent annual shareholders’ meeting that it would keep the foreign ownership limit (FOL) unchanged at 49 per cent.

IMP and TRA, which are two of the four biggest domestic drug makers, also decided to make no move related to the FOL at their annual shareholders’ meetings in May. IMP and TRA’s piece for foreign investors remained tiny, at 0.009 and 3.266 per cent, respectively, as of September 2015.

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By By Ha Vy

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