Masan fails to buy out Vinacafe
In this article (5)
Conglomerate Masan has not been able to buy out instant coffee producer Vinacafe Bien Hoa JSC due to unfavorable market conditions. Its subsidiary Masan Beverage Company Limited could only purchase a 0.3 percent stake in the coffee producer via order matching between June 17 and July 16, against a plan to purchase 1.51 percent to fully own the company.
Masan Beverage owns 98.79 percent of Vinacafe, in which it has been buying stakes since 2011.The most recent transaction occurred in February 2018 when it bought nearly eight million shares for VND1.6 trillion ($69 million) to increase its holding to 98.49 percent. Ticker VCF of Vinacafe on Friday closed at VND208,000 ($9), up 16.8 percent from the start of the year.
The company, established in 1968 and among the most popular instant coffee brands in Vietnam, targets net revenues and net profits this year of VND3.3 trillion ($142 million) and VND780 billion ($33 million), respectively.
Questions & Answers
Q.What was Masan's ultimate goal with Vinacafe Bien Hoa JSC?
What was Masan's ultimate goal with Vinacafe Bien Hoa JSC?
Masan Beverage Company Limited, a subsidiary of conglomerate Masan, aimed to fully own Vinacafe. This latest attempt to buy out the company involved purchasing an additional 1.51 percent stake.
Q.Why did Masan's recent attempt to increase its stake in Vinacafe fail?
Why did Masan's recent attempt to increase its stake in Vinacafe fail?
The conglomerate Masan was unable to complete its planned purchase of Vinacafe shares due to unfavourable market conditions. Its subsidiary only managed to acquire a 0.3 percent stake.
Q.When was the last time Masan successfully increased its holding in Vinacafe?
When was the last time Masan successfully increased its holding in Vinacafe?
Masan's most recent successful transaction occurred in February 2018. It bought nearly eight million shares for VND1.6 trillion ($69 million), increasing its holding to 98.49 percent at that time.
Q.What are Vinacafe's financial projections for the current year?
What are Vinacafe's financial projections for the current year?
Vinacafe is targeting net revenues of VND3.3 trillion ($142 million) for this year. Also, it aims to achieve net profits of VND780 billion ($33 million) in the same period.