Fraser Neave to buy more Vinamilk shares

December 09, 2016 | 09:01

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Two beverage companies controlled by Thai business magnate Charoen Sirivadhanabhakdi registered to buy 38.2 million shares each, or 2.7 per cent of dairy firm Vinamilk's charter capital on December 7.

Vinamilk is the largest stock by market capitalisation in Viet Nam.

The Singapore-based F&N Dairy Investment Pte. Ltd. and F&N BEV Manufacturing Pte. Ltd. are subsidiaries of Fraser & Neave Ltd., whose CEO Lee Meng Tat is a member of Vinamilk’s management board.

The two companies are picking up 5.4 per cent of Vinamilk’s shares, according to the HCM City Stock Exchange (HOSE).

Trading will be conducted based on one of the norms, including competitive auction, negotiated trade and put-through trade, from December 12, 2016, to January 10, 2017.

F&N Dairy Investment is currently Vinamilk’s largest foreign shareholder, with an ownership of 10.95 per cent. The group has been investing in Vinamilk since 2005 and its holding of Vinamilk shares is now worth around US$1 billion.

The State Capital Investment Corporation (SCIC) holds the Government’s 45 per cent stake in Vinamilk and foreign investors have for long been interested in it thanks to its strong prospects and expansion plans.

Starting December 12, SCIC will put 130.6 million shares of Vinamilk on sale, which amounts to 9 per cent of Vinamilk’s charter capital, at VND144,000 per share (US$6.32).

As per the SCIC’s divestment regulations, each investor is allowed to buy a maximum of 2.7 per cent Vinamilk’s shares. If the transactions are successful, the two companies will spend at least VND11.3 trillion to own the stakes, raising Fraser & Neave’s total holdings from 10.95 per cent to 16.35 per cent.

Vinamilk shares are priced at VND132,500 per share on the stock market.

Last year, the Thai billionaire Charoen bought Việt Nam’s supermarket chain Metro Cash & Carry.

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