Jun 19, 2018 / 00:36

Platinum Victory lifts holding in Vinamilk to 11%

Platinum Victory has completed the purchase of 8.35 million shares in Vietnam Diary Products Company, known as Vinamilk, announced the fund.

The shares purchased was part of the 14.51 million units Platinum Victory had registered to buy in from May 9 to June 7. However, due to the unfavorable conditions of the market, the fund was unable to purchase the registered amount, it said.
 
Illustration photo.
Illustration photo.
During this period, Vinamilk's shares changed hand at price of VND161,000 (US$7.04) - VND184,000 (US$8.05) per share, for which Platinum Victory would need at least VND1.34 trillion (US$58.62 million) - VND1.54 trillion (US$67.37 million) for this transaction.
After the transaction, Platinum Victory, a subsidiary of Hong Kong - based Jardine Matheson has increased its holding in Vinamilk to 154 million shares, equivalent to 10.61% of charter capital. 
Platinum Victory has shown its ambition in Vietnam when announcing a  decision to purchase an additional 14.5 million shares of Vietnam's largest dairy producer. With the plan, Platinum Victory expects to raise its holding in Vinamilk to 11.61%, or 168.45 million shares. The transaction is scheduled from June 13 to July 12. 
Platinum Victory and F&N Dairy Investment, a wholly-owned subsidiary of Fraser & Neave, backed by Thai tycoon Charoen Sirivadhanabhakdi, are in a race to increase their respective holdings at Vinamilk. 
Platinum Victory currently is the third largest shareholders at Vinamilk, after State Capital Investment Corporation (SCIC) with 36% and F&N Dairy Investment with nearly 20%. 
In May, F&N Dairy Investment had registered to buy in 14.5 million shares of Vinamilk but only picked up 130,000 shares. Since 2017, the Singaporean fund had tried 15 times buying Vinamilk shares unsuccessfully, according to exchange disclosures.
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 came at over VND51 trillion (US$2.2 billion), representing an increase of 9% year-on-year, in which domestic sales totaled VND43.5 trillion (US$1.9 billion), up 14% from 2016. 
Vinamilk set 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.
The local dairy market is expected to double its size by 2020, reaching US$8.2 billion as Vietnam's population is projected to increase by 5 million people and personal income and dairy consumption are foreseen to increase at 15% and 7% compounded annual growth rate, respectively, informed the EU-Vietnam Business Network (EVBN)'s 2016 report.