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Banking & Finance

SCIC auctioning 3.33% of Vinamilk

Released at: 16:42, 10/11/2017

SCIC auctioning 3.33% of Vinamilk

Photo: Huyen Thanh

Auction being held today, SCIC tells seminar.

by Minh Do

The State Capital Investment Corporation (SCIC) is auctioning 3.33 per cent of the State’s stake in the Vietnam Dairy Product JSC (Vinamilk), the largest dairy manufacturer in Vietnam, today, November 10, at the Ho Chi Minh City Stock Exchange.

Mr. Le Long, Manager of the SCIC’s Strategy and Planning Department, made the announcement at the Vietnam-Korea M&A seminar. “The value of the divestment is estimated at over $300 million,” he told the gathering. “As at yesterday, around 19 domestic and foreign investors had registered to purchase the stake,” he said. “Around 48.3 million Vinamilk shares will be sold this afternoon.”

This is the second sale of the State’s capital in the dairy company, with the first also run by the SCIC in December last year.

Vinamilk is among the firms named in SCIC’s divestment plan in the 2017-2020 period. The dairy giant now has charter capital of VND14.5 trillion ($659 million), with State capital standing at VND5.7 trillion ($259 million), or 39 per cent.

SCIC holds a 39.34 per cent stake in Vinamilk, equivalent to nearly 571 million shares as at December 31, 2016.

In the previous deal on December 12, 2016, the SCIC sold only 60 per cent of the available shares.

The Singapore-based dairy group Fraser and Neave Ltd (F&N) was the only foreign investor interested. Its two subsidiaries, F&N Dairy Investment Ltd and F&N Bev Manufacturing Pte Ltd, spent nearly $500 million at the auction.

The advisory firms for the previous deal were the Singaporean branch of Morgan Stanley Asia Limited, SSI, and VinaCapital Corporate Finance Vietnam Limited.

F&N is now Vinamilk’s largest foreign shareholder, with a 18.74 per cent holding.

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