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Mystery foreign investor buys $396 million stake in dairy giant Vinamilk

By Minjun ParkVietnam
1 min read
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In this article (5)

Vietnamese dairy giant Vinamilk sold a 3.33 percent to an unnamed foreign investor for VND8.99 trillion ($396 million) on Friday.

The investor bought the 48.3 million shares on offer for VND186,000 ($8.20) apiece, 24 percent higher than the asking price.

The share sale, which attracted 19 investors including six foreign firms, reduced the state ownership in Vinamilk, Vietnam’s biggest listed firm, to 36 percent, still enough to retain veto rights.

Vietnam’s State Capital Investment Corporation had forecast the sale would fetch VND6.5 trillion to VND7 trillion ($286.3 million to $308.4 million).

In December, the state investor put on offer a 9 percent stake in Vinamilk, but was only able to offload 5.4 percent to two investors – both units of existing shareholder Fraser and Neave Ltd.

Investors looking to gain a degree of control over Vinamilk were deterred by the size of the stake on offer. The government had initially planned to sell its entire 44.7 percent stake.

The government is trying to divest from hundreds of state-owned enterprises, including brewers Hanoi Beer Alcohol and Beverage JSC (Habeco) and Saigon Beer Alcohol Beverage Corp (Sabeco) in which it owns a combined $7.8 billion worth of shares by market value.

Questions & Answers

Q.

How much more than the asking price did the foreign investor pay per share?

A.

The foreign investor paid VND186,000 ($8.20) per share, which was 24 percent higher than the asking price. This resulted in a total sale value of VND8.99 trillion ($396 million).

Q.

What percentage of Vinamilk does the state still own after this share sale?

A.

After the recent share sale, the state ownership in Vinamilk has been reduced to 36 percent. This remaining stake is still sufficient for the state to retain its veto rights within the company.

Q.

How many investors participated in the recent share sale of Vinamilk?

A.

The recent share sale of Vinamilk attracted a total of 19 investors. Among these participants, six were foreign firms, indicating significant international interest in the dairy giant.

Q.

What was the government's initial plan for its stake in Vinamilk?

A.

The government had initially planned to sell its entire 44.7 percent stake in Vinamilk. However, investors looking for a degree of control were reportedly deterred by the size of the stake offered.

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