Singaporean auto firm ups stake in Vinamilk

Singapore’s biggest auto group Jardine Cycle & Carriage has bought an additional 1.1 percent stake in Vietnamese dairy firm Vinamilk, raising its current share in Vietnam’s biggest listed company to 10 percent.

The investor bought 16.4 million more shares for VND3.1 trillion ($136.5 million) over the weekend.

Last Monday, Jardine Cycle & Carriage spent $400 million on 48.8 million shares in Vinamilk after purchasing 48.3 million of shares for $396 million on November 10.

The two deals gained it a 8.9 percent stake in the company, and with the latest deal it now owns 145.6 million Vinamilk shares, representing a 10 percent stake, the company announced on its website.

Foreign investors currently hold a 56.4 percent stake in the dairy firm.

Jardine Cycle & Carriage is now the third biggest shareholder after Singapore’s Fraser&Neave, which has a 18.74 percent stake.

Vietnam’s State Capital Investment Corporation holds the majority share with a 36 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.