The Hanoitimes - If successful, Platinum Victory will increase its holding at Vinamilk to 11.62% or 202.29 million shares from the current 10.62%, or 184.88 million shares.
Singapore’s Platinum Victory, a subsidiary of Hong Kong-based conglomerate Jardine Matheson, has registered to purchase an additional of 17.41 million shares in Vietnam’s largest dairy producer Vinamilk, according to the Ho Chi Minh City Stock Exchange (HoSE).
If successful, Platinum Victory will increase its holding at Vinamilk to 11.62% or 202.29 million shares from the current 10.62%, or 184.88 million shares.
At the current market price of VND125,000 (US$5.40) a Vinamilk share, the fund would need at least VND2.17 trillion (US$95 million) for this transaction, which is expected to be carried out from January 9 to February 7 via put-through and/or order-matching transactions on the HoSE.
In 2018, Platinum Vicotry tried six times buying 14 – 17 million Vinamilk shares unsuccessfully, citing the unfavorable market conditions as reason.
Platinum Victory currently is the third largest shareholder at Vinamilk, after State Capital Investment Corporation (SCIC) at 30.01% and F&N Dairy Investment at 17.31%.
Backed by Jardin Matheson, one of Asia’s biggest conglomerates with revenue of US$16 billion in 2017, Platinum Victory is in a race with F&N Dairy Investment, a wholly-owned subsidiary of Fraser & Neave and owned by Thai tycoon Charoen Sirivadhanabhakdi, to increase their respective holdings at Vinamilk.
Jardine Matheson, through its subsidiaries Jardine Cycle & Carriage (JC&C) and Platinum Victory, has invested in Vietnam for many years.
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) in 2017, an increase of 10% over the previous year, with Vinamilk commanding a market share of around 50%, according to the latest statistics.