Tael Two Partners Ltd.’s divestment from GTNfoods JSC is the first foreign shareholder to divest and may be followed by two others, potentially opening the doors to Vinamilk to increase its holdings in the firm which holds 51 per cent of Moc Chau Milk Company.
|GTNfoods holds the controlling stake in Moc Chau Milk, making it a prize for Vinamilk
Most recently, Tael Two Partners announced that it will sell 55 million shares or 22 per cent stake in GTNfoods. The transaction is expected to be finished between May 10 and June 7 by matching the tender offer of Vinamilk. According to the plan, interested investors may spend VN965 billion ($41.6 million) for the purchase if the selling price equals the stock’s valuation on the stock exchange.
After Tael Two Partners, the two remaining foreign shareholders PENM IV Germany GmbH and Co.KG with 6 per cent stake, are also planningto divest from GTNfoods.
At present, local shareholders hold a controlling stake in GTNfoods.
|West Ocean Invest JSC currently holds 28 per cent stake in GTNfoods, the runners up are BZZ Invest., JSC with 7 per cent stake and Nghiem Van Tung with 5 per cent. Besides, in early 2019, Ho Chi Minh City Securities Corporation (HSC) completed the purchase of 20 million shares, or an 8 per cent stake, to become a large shareholder of GTNfoods.
On April 11, Vinamilk submitted its second proposal to the Ho Chi Minh City Stock Exchange (HSX) to buy 116.71 million shares, equalling a 46.68 per cent stake, in GTNfoods at the unit price of VND13,000 ($0.56). The total value of the offer is VND1.517 trillion ($65.96 million).
Vinamilk’s offer is still lower than the market price of GTNFoods, which closed the April 11 session at VND17.100 ($0.74) per share. If successful, Vinamilk will increase its holding in the dairy manufacturer from 2.32 to 49 per cent, equalling 125.5 million shares.
However, local shareholders who hold a controlling stake of 51-52 per cent in GTNfoods, have yet to approve Vinamilk’s proposal.
At the same time, the race for Vinamilk shares between F&N Dairy Investment (a group backed by Thai tycoon Charoen Sirivadhanabhakdi) and Platinum Victory (a subsidiary of Hong Kong-based conglomerate Jardine Matheson) is becoming fiercer. Notably, since the beginning of the year, the two parties have registered to buy additional Vinamilk shares five times.
Platinum Victory registered to purchase an additional 17.41 million shares (1 per cent), in Vinamilk to increase its holding to 11.62 per cent from the current 10.62 per cent.
F&N Dairy Investment also registered to purchase 14.51 million Vinamilk shares to increase its ownership from the existing 17.31 per cent.