SCIC to divest additional 3.33 per cent stake in Vinamilk in October

In 2016, Vietnam saw a series of merger and acquisition (M&A) multimillion and multibillion dollar deals. In April, Thai company Central Group overcame numerous large-scale groups like South Korean Lotte, Thai Berli Jucker, and Dairy Farm from Singapore to officially become the new owner of Groupe Casino’s Big C Vietnam for $1.14 billion. After the deal, Central Group took over Big C’s network of 43 stores and 30 shopping centres across the country. Central Group, in partnership with the Vietnamese Nguyen Kim Group, will continue Big C Vietnam’s strategy concerning the supply of goods produced in Vietnam for Big C stores. Central Group’s purchase of Big C Vietnam is not only the largest M&A deal in Vietnam this year, but also marks a massive penetration by Thai goods into the Vietnamese market. However, the deal is also attached to scandals of delay in transfer tax payment. Notably, as of June 20, nearly two months after the transfer took place, the local authorities had yet to receive the declaration of tax payment of the deal, while under the provisions of Vietnamese law the deadline for submission is the 10th day after the transfer is officially completed. Central Group said that it had no obligation to declare and pay tax on the deal, while Casino Group and the management board of Big C Vietnam refused to comment. The debacle went on until late August, when Central Group paid off the whole VND2.034 trillion ($93 million) it declared in tax earlier. The deal…... [read more]

After increasing its holdings in Vietnam Dairy Products Joint Stock Company (Vinamilk) to 13.65 per cent, F&N Dairy Investments Pte., Ltd., a 100 per cent-owned subsidiary of Fraser & Neave Ltd. (F&N), has registered to buy an additional 1.5 per cent, equalling 21.8 million shares, according to newswire Bizlive. After this transaction, the company will increase its holdings in Vinamilk to 220 million shares, equalling a 15.15 per cent stake. Previously, F&N Dairy Investment Pte., Ltd. and F&N Beverages Manufacturing Sdn., Bhd., another 100 per cent-owned subsidiary of F&N, spent VND11.3 trillion ($499.56 million) on buying 78.38 million shares, equalling a 5.4 per cent stake, in Vinamilk. After the auction, F&N increased its holdings in Vinamilk to 16.35 per cent, including the 13.65 and 2.7 per cent stakes of F&N Dairy Investments Pte., Ltd. and F&N Beverages Manufacturing Sdn. Bhd, respectively. According to its consolidated financial report, in the nine months of this year, Vinamilk earned VND35.1 trillion ($1.55 trillion) in revenue with VND7.5 trillion ($330.4 million) in after-tax profit. The company expects to earn VND46.2 trillion ($2.04 billion) in revenue with VND11.2 trillion ($493.4 million) in after-tax profit, signifying an increase of 14.86 per cent and 19.77 per cent, respectively. RELATED CONTENTS: Vinamilk auction pushed back to December 12 By Ha Vy... [read more]

F&N Beverages Manufacturing Sdn. Bhd. and F&N Dairy Investments Pte., Ltd., the two 100 per cent-owned subsidiaries of Fraser & Neave Ltd. (F&N) have completed the purchase of a total of 78.38 million shares, equalling a 5.4 per cent stake, in Vietnam Dairy Products Joint Stock Company (Vinamilk), according to newswire Cafef.vn. Accordingly, the two companies spent VND11.3 trillion ($499.56 million) on buying the registered share volume at the initial offering price of VND144,000 ($6.33) apiece. After the auction, F&N increased its holding in Vinamilk to 16.35 per cent, including the 13.65 and 2.7 per cent stakes of F&N Dairy Investments Pte., Ltd. and F&N Beverages Manufacturing Sdn. Bhd, respectively. Thus, F&N completed its plans to extend holdings in Vinamilk, which is a part of the group’s strategy to expand presence in Southeast Asia and enhance the group’s competitive capacity against the two largest US soft drink giants in the region, PepsiCo Inc. and Coca-Cola Co. Lee Meng Tat, F&N’s chief executive officer for non-alcoholic beverages, said that if Vinamilk raises its foreign ownership limit, F&N will intensify efforts to acquire a sufficient shareholding. F&N is among the top three soft drinks players in its home country, Singapore, as well as in Thailand and Malaysia, according to Euromonitor International. However, it is not ranked in the top five in Vietnam, Indonesia, and the Philippines, where the company is looking to grow. At the closing date of the transaction of December 12, Vinamilk shares stood at VND133,700 ($5.93) apiece, 7 per…... [read more]

Two firms of Thai billionaire register to buy Vinamilk shares The Saigon Times Daily HCMC – Only two companies owned by a Thai billionaire have expressed interest in joining a State Capital Investment Corporation (SCIC) auction of 130 million shares at Vinamilk, or 9% of the dairy processor’s total. F&N Dairy Investments Pte Ltd and F&N Beverages Manufacturing Sdn Bhd, which are both owned by Fraser & Neave Ltd (F&N) controlled by Thai billionaire Charoen Sirivadhanabhakdi, want to acquire shares at Vietnam Dairy Products Joint Stock Company (Vinamilk), local news site VnExpress reports. When the registration of interest expired on December 9, these were the only two entities to register to join the share auction, bidding for 78.38 million shares, or 5.4% of Vinamilk’s total. Every share is priced at VND144,000. F&N Dairy Investments has been a shareholder of Vinamilk since 2005. It is Vinamilk’s largest foreign shareholder with an 11.04% stake. Its chief executive officer Lee Meng Tat is on Vinamilk’s board. Vinamilk shares closed at VND135,800 per share on December 9, the last trading day before the auction begins today. SCIC, which now owns 45.06% of Vinamilk, said it will sell 9% of the State shares in Vinamilk within this year. SCIC chairman Nguyen Duc Chi told reporters in Hanoi recently that the shares would be sold by lot or separated to offer to two investors based on agreement between SCIC and buyers, but the sale must ensure the highest price possible. After selling 9% of the shares…... [read more]

Hanoi (VNA) – The Securities Journalists’ Club has announced top 10 events in Vietnam’s stock market in 2016. 1. 20-year hallmarks of the securities sector: On November 28, 2016, the State Securities Commission hosted a ceremony celebrating the 20th anniversary of the securities sector’s traditional day and received the Independence Order, second class. Over the past two decades, Vietnam has developed a well-functioning securities market with more than 1,000 public enterprises listed on the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HSX or HOSE). The market capitalisation of all listed companies hit over 70 billion USD, attracting 1.6 million domestic and foreign investors. Upwards 2 quadrillion VND has been raised for national and corporate development and nearly 4,000 firms have launched initial public offerings via the market. 2. Year of “black swan” and unexpected shocks: Vietnam’s securities market 2016 suffered unexpected external shocks that left powerful repercussions, including the shutdown of China’s stock market on April 1, the UK’s exit from the European Union on June 24, and the US presidential election result on November 9, which led to sell-off by investors. Two of the worst hits were on June 24 and November 9 when the benchmark VN-Index slumped 5.47 percent and 3 percent, respectively. Thanks to solid market fundamentals, it later recovered. 3. From IPO to trading platform – “record” short path: On November 1, 2016, the Finance Ministry’s Circular 115/2016/TT-BTC officially took effect. Accordingly, within 20 working days from the deadline for making payment…... [read more]

Viet Nam’s stock market has kept its nose ahead in 2016 despite several negative impacts of international events. The 10 biggest events on the securities market in 2016 were announced yesterday. 1.Securities sector turns 20 The State Securities Commission on November 28 received the Independence Order, Second Class as it marked the securities sector’s 20th anniversary. For the past 20 years, Viet Nam has developed a securities market that functions well, with more than 1,000 public companies listed on the two exchanges in HCM City and Ha Noi. The market capitalisation of all listed companies has reached US$70 billion, attracting 1.6 million domestic and international investors. The State has also raised more than VND2 quadrillion ($88.9 billion) for national development, and more than 4,000 enterprises have been equitised on the local stock market. 2.Year of international shocks Viet Nam’s stock market experienced significant impacts of several international events, including the shutdown of China’s stock market on April 1, the Brexit vote on June 24 and the US presidential election on November 9. All these events shook the Vietnamese stock market, leading to sell-offs by investors. Two of the worst hits were on June 24 and November 11 when the benchmark VN Index slumped 5.5 per cent and 3 per cent, respectively. 3. Circular directs trading of SOE shares Ministry of Finance’s Circular 115/2016/TT-BTC took effect on November 1. It says that a State-owned enterprise (SOE) must trade its shares on the Unlisted Public Company Market (UPCoM) within 20 days of…... [read more]

Viet Nam News HÀ NỘI - Việt Nam's stock market has kept its nose ahead in 2016 despite several negative impacts of international events. The 10 biggest events on the securities market in 2016 were announced yesterday. 1. Securities sector turns 20 The State Securities Commission on November 28 received the Independence Order, Second Class as it marked the securities' sector's 20th anniversary. For the past 20 years, Việt Nam has developed a securities market that functions well, with more than 1,000 public companies listed on the two exchanges in HCM City and Hà Nội. The market capitalisation of all listed companies has reached US$70 billion, attracting 1.6 million domestic and international investors. The State has also raised more than VNĐ2 quadrillion ($88.9 billion) for national development, and more than 4,000 enterprises have been equitised on the Việt Nam's stock market. 2. Year of international shocks Việt Nam's stock market experienced significant impacts of several international events, including the shutdown of China's stock market on April 1, the Brexit vote on June 24 and the US presidential election on November 9. All these events shook the Vietnamese stock market, leading to sell-offs by investors. Two of the worst hits were on June 24 and November 11 when the benchmark VN Index slumped 5.5 per cent and 3 per cent, respectively. 3. Circular directs trading of SOE shares Circular 115/2016/TT-BTC took effect on November 1. It says that a State-owned enterprise (SOE) must trade its shares on the Unlisted Public Company…... [read more]

60% of Vinamilk shares at auction find buyers Hong Phuc HCMC – Two foreign investors acquired 60% of the Vinamilk shares which State Capital Investment Corporation (SCIC) offered at auction on December 12. At the auction held on the Hochiminh Stock Exchange, F&N Dairy Investments Pte Ltd and F&N Bev Manufacturing Pte Ltd bought nearly 78.38 million shares of Vietnam Dairy Products Company. SCIC put up 130.63 million shares for auction on December 12, which represent 9% of Vinamilk’s chartered capital. SCIC chairman Nguyen Duc Chi said for the unsold shares, the firm would propose new sale plans to the Prime Minister. The winning bid stood at VND144,000 a share, the same as the reserve price. “Given the volatility of ASEAN equity markets, including Vietnam, SCIC’s share sale is successful as the winning bid is VND8,200 higher than the Vinamilk stock reference price on the day of the auction taking place,” a SCIC representative said. Earlier, Chi told reporters that if the shares are not sold out, SCIC will hold more auctions to sell them next year. Before on December 12’s auction, SCIC owns 45.06% of Vinamilk on behalf of the State. The Government wants to divest capital from 10 large State-owned businesses, including Vinamilk.... [read more]

The State Capital Investment Corporation (SCIC) will divest 130 million Vinamilk shares, equaling 9% of the total outstanding shares, on December 12. The chosen method is competitive offering, and each investor is allowed to buy between 20,000 and 38.2 million shares. The starting price in this highly anticipated sale is VND144,000 (US$6.36) per share. Sole participants in the sale are F&N Dairy Investment Pte. Ltd and F&N Bev Manufacturing Pte.Ltd, both of which are subsidiaries of Fraser&Neave Limited. The two firms registered last week to buy 5.4% of Vinamilk’s shares together, which is the highest amount of stakes that the two investors can buy at the sale. Originally a Singaporean conglomerate, F&N was taken over by Sirivadhanabhakdi in 2012 in his efforts to expand in Southeast Asia. F&N Dairy Investment is already a strategic investor at Vinamilk with a 10.95% stake. As a result, if the two F&N subsidiaries succeed at the public sale, they will control 16.35% of shares at Vietnam’s largest dairy altogether. Last month Sukit Udomsirikul, head of research at Maybank Kim Eng Thailand, told VIR that Thai investors are excited about the Vietnamese food and beverage sector thanks to its strong growth potential. The sluggish Thai economy is only expanding at 3% per year, thus investors in Thailand are eager to target high-growing companies with a high level of transparency like Vinamilk. The seller SCIC has also shown great determination to welcome foreign investors to the share sale. For the first time in the Vietnamese state…... [read more]

Two subsidiaries of Fraser & Neave Ltd controlled by Thai billionaire Charoen Sirivadhanabhakdi each bought 39.19 million shares of Vinamilk, or a 2.7 per cent stake, at the minimum price at an auction held at the HCM Stock Exchange on December 12. Thailand's F&N Dairy Investment Pte. Ltd. and F&N Bev Manufacturing PTE.LTD each bought a 2.7 per cent stake in Vinamilk at an auction at the HCM City bourse on December 12. The State Capital Investment Corporation (SCIC) offered 130.6 million shares, or 9 per cent, on sale at an initial price of VND144,000 (US$6.32). Each investor was allowed to buy a maximum of 2.7 per cent stake. F&N Dairy Investment, one of the two Thai companies, is now Vinamilk's largest foreign shareholder with a 11 per cent stake, and its CEO Lee Meng Tat is a member of Vinamilk's management board. The company has been buying Vinamilk shares since 2005. F&N Bev Manufacturing PTE.LTD was the other buyer. There were no other participants in the auction. SCIC raised VND1.286 trillion ($56.59 million) from the stake sale. It said that, given the "vulnerable" stock markets in Southeast Asia and Việt Nam, the auction could be deemed a success especially since the shares were sold at more than a 6 per cent premium to the market price. Vinamilk is the largest stock by market capitalisation in Việt Nam, with SCIC still holding more than 36 per cent. Vinamilk shares closed yesterday at VND133,700. Morgan Stanley Asia Limited, Saigon Securities Inc…... [read more]




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