Pactum Dairy Group is looking to acquire a stake in IDP. (Photo: www.agric.wa.gov.au)
Pactum Dairy Group, which specializes in the production of premium Long Life Dairy and Food and Beverage products, in 2015 struck a deal with Vietnam-based International Dairy Products JSC (IDP) under which the latter would buy four million liters of UTH milk per year from the Australian firm to produce Love’in Farm products.
The deal paves the way for the divestment of IDP’s foreign partners in the future, the Ministry of Planning and Investment-run Dau Tu (Investment) newspaper reported.
In 2014, VinaCapital Vietnam Opportunities Fund (VOF), a fund run by VinaCapital Group, and Daiwa PI Partners Co. Ltd. jointly acquired a 70% stake in IDP for $45 million, with $36 million from VOF.
Nguyen Tuan Khai and CEO Tran Bao Minh hold the remaining 30% stake.
After the entry of foreign investors, IDP made improvements in both terms of financial situation and market share. Its revenue is aimed at $120 million in 2016 and $150 million in 2017.
Dang Minh Loan, deputy managing manager of VOF cum chairperson of IDP, tipped that a number of foreign and domestic investors have expressed interest in acquiring VOF’s holding for at least $72 million, twice the initial investment VOF made.
However, Andy Ho, managing director of VOF, earlier stated that the fund and Daiwa PI Partners would hold on their investment in IDP for at five years or more.