Singapore’s Jardine Cycle & Carriage Buys 5.5% Stake in Vinamilk for $6167 Million

Tuan Minh

15:17 13/11/2017

BizLIVE - The deal increases Jardine Cycle & Carriage (JC&C)’s exposure to the Vietnamese economy, and it remained open to making further such investments.

Singapore’s Jardine Cycle & Carriage Buys 5.5% Stake in Vinamilk for $6167 Million

Vinamilk is the "cash cow" for SCIC. Photo: Internet

Singapore's Jardine Cycle & Carriage's wholly owned unit Platinum Victory has bought a 5.53% stake in Vinamilk, Vietnam's largest listed company and the No. 1 dairy producer, for $616.6 million in cash, the Singaporean company said Monday in an exchange filing.
It has bought the shares through the open market and from State Capital Investment Corporation, the largest shareholder of Vinamilk.
“The taking of this interest in Vinamilk is in line with the JC&C group's strategy of investing in market leading companies in Southeast Asia. In particular, it increases JC&C's exposure to the Vietnam economy,” it said in the statement.
The sale of Vinamilk shares was one of the country’s most highly anticipated selloffs. The government sold off a 5.4% stake in the business last year to Singapore-based Fraser & Neave, a subsidiary of Thai conglomerate TCC. The sale came in under the expected 9% the government originally planned to sell.
Last Friday (November 10), SCIC sold the entire 48.3 million shares, or a 3.33% stake, via an auction on the Hochiminh Stock Exchange (HOSE) for higher-than-expected $396 million. The shares were sold at 186,000 dong ($8.19) each, 24% higher than the initial price and 7% premiums to the closing price on November 10.
After last week’s sale, SCIC remained the largest shareholder in Vinamilk (VNM) with a 36% stake – the minimum amount to ensure the voting right. Meanwhile, Singapore’s Fraser & Neave holds an 18.7%.
The deal increases Jardine Cycle & Carriage (JC&C)’s exposure to the Vietnamese economy, and it remained open to making further such investments, the company added.
JC&C, a subsidiary of Hong Kong-based conglomerate, has marked its presence in Vietnam for decades, with a 25% stake in Truong Hai Automobile Joint Stock Company (Thaco), the largest car manufacturer in Vietnam, and 23% in Hochiminh Stock Exchange-listed REE Corp (REE).
Other larger shareholders include Dragon Capital, VinaCapital, Matthews Asia, and Arisaig Partners.
At the close on November 13, the stock of Vinamilk increased 6.4% to 185,000 dong a share.

TUAN MINH

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