Wednesday, 23 Oct 2019

F&N Dairy Investments strives to raise holding in Vinamilk

Updated at Friday, 14 Sep 2018, 19:16
The Hanoitimes - Since 2017, the Singaporean fund has failed 20 times to buy Vinamilk shares.
Singapore-based F&N Dairy Investments has registered to purchase 14.5 million shares of Vietnam's largest dairy producer Vinamilk, equivalent to 1% of charter capital of the firm, according to HoSE on September 12.
Illustrative photo.
Illustrative photo.
The transaction period is scheduled from September 17 to October 16 via put-through transactions and order-matching transactions on HoSe. 

Once completed, F&N Dairy Investment would increase its shareholding at Vinamilk from 251.2 million shares, equivalent to a 17.31% stake, to 265.7 million or 18.31%. 

Vinamilk shares closed on September 13 at VND132,100 (US$5.72) apiece, therefore, F&N Dairy Investments is expected to spend at least VND1.91 trillion (US$82.64 million) for its upcoming transaction. 

In May, F&N Dairy Investment, a wholly-owned subsidiary of Fraser & Neave and owned by Thai tycoon Charoen Sirivadhanabhakdi had registered to buy in 14.5 million shares of Vinamilk but could pick up 130,000 shares only. 

On September 12, the fund failed to purchase the said share amount between August 14 and September 12, citing "unfavorable market conditions". Since 2017, the Singaporean fund had tried 20 times buying Vinamilk shares unsuccessfully, according to exchange announcements.

F&N Dairy Investment is a 100%-owned subsidiary of Fraser & Neave, a group backed by Thai tycoon Charoen Sirivadhanabhakdi. The fund is currently the second largest shareholder at Vinamilk, after State Capital Investment Corporation (SCIC) with 36%. 

Recently, Platinum Victory - a subsidiary of Hong Kong-based Jardine Matheson also expressed its intention of buying 14.5 million Vinamilk shares. In case of completion, Platinum Victory will increase its holding from 154 million shares, representing 10.62%, to over 168.5 million shares, or 11.62%. The transaction period is scheduled from August 22 to September 20. 

Vinamilk's after-tax profit in 2017 reached VND10.2 trillion (US$452 million), up 10% year-on-year, according to the company's financial statement. Its revenue was posted at over VND51 trillion (US$2.2 billion), representing an increase of 9% year-on-year, in which domestic sale accounted for VND43.5 trillion (US$1.9 billion), up 14% from 2016. 

Vinamilk sets its revenue target in 2018 of VND55.5 trillion (US$2.4 billion), up 8.5% yearly. Under the plan, Vinamilk estimated its after-tax profit to reach VND10.7 trillion (US$473 million), increasing 4.6% over 2017.

Vietnam's dairy industry posted revenue of over VND100 trillion (US$4.4 billion) last year, an increase of 10% over the previous year, with Vinamilk commanding a market share of around 50%, according to the latest statistics. 
Ngoc Thuy
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