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).
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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.
