Vinamilk Sale Helps Double SCIC’s 2016 Net Profit to $700 Million

Tuan Minh

17:43 10/01/2017

BizLIVE - The Vietnamese government’s investment arm saw its net profit double to $700 million thanks to earnings from the sale of Vinamilk shares.

Vinamilk Sale Helps Double SCIC’s 2016 Net Profit to $700 Million

SCIC booked a hefty profit in 2016 thanks to the sale of Vinamilk shares. Photo: Internet

State Capital Investment Corporation (SCIC), the Vietnamese government’s sovereign fund, booked a net profit of 15.83 trillion dong ($700 million) in 2016, up 97% from a year earlier, thanks to the unloading of Vinamilk shares.
SCIC’s return on equity (ROE) stood at 19.9%, according to information announced at a conference on Jan. 10.
The firm last month raked in 11.3 trillion dong ($500 million) from selling a 5.4% stake of Vietnam Dairy Products JSC (Vinamilk) to Singapore-based Fraser & Neave, 28 times the cost at which SCIC bought Vinamilk shares.
SCIC sold shares in 73 companies last year, booking proceeds of 16.11 trillion dong ($713 million), much higher than the initial cost of 3.08 trillion dong ($136.4 million).
Established in 2005, SCIC manages a portfolio of companies that operate in a wide range of sectors including finance, energy, manufacturing, telecommunications, construction and information technology.
Under a government-approved plan, the firm is mandated to divest from 10 profitable companies that include Bao Minh Insurance, FPT Telecom, Vinamilk, Vinare, Tien Phong Plastics, Binh Minh Plastics and FPT Corp.

TUAN MINH

Từ khóa: SCIC, FPT, Vinamilk

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