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.
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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%.
At the close on June 6, Vinamilk shares closed at VND164,000 (US$7.16) apiece, therefore, F&N Dairy Investments is expected to spend at least VND2.37 trillion (US$103.4 million) for this 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.
The fund continued to buy the said share amount between June 6 and July 5 but turned out unsuccessfully, citing "unfavorable market conditions", according to exchange announcements.
F&N Dairy Investment is currently the second largest shareholder at Vinamilk, after State Capital Investment Corporation (SCIC) with 36%.
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.
