F&N Dairy Investment wants more Vinamilk shares

07-Jun-2018 Intellasia | | 8:12 AM Print This Post

Singapore-based F&N Dairy Investment has registered to purchase an additional 14.5 million shares of Vietnam Diary Products Company, known as Vinamilk, equivalent to 1 percent charter capital of the dairy firm.

The transaction period is scheduled from June 6 to July 7 on the Ho Chi Minh Stock Exchange (HoSE).

Once completed, F&N Dairy Investment would increase its shareholding at Vinamilk from 251.2 million shares, or 17.31 percent, to 265.7 million or 18.31 percent. In May, F&N Dairy Investment had registered to buy in 14.5 million shares of Vinamilk but only picked up 130,000 shares. Since 2017, the Singaporean fund had tried 15 times buying Vinamilk shares unsuccessfully, according to exchange announcements.

At the close on June 4, Vinamilk shares closed at VND175,000 (US$7.69) apiece. Therefore, F&N Dairy Investment would need at least VND2.54 trillion (US$111.63 million) for this transaction.

Recently, Platinum Victorya subsidiary of Hong Kong-based Jardine Matheson also expressed its intention of buying 14.5 million Vinamilk shares. In case of completion, Platinum Victory will increase its holding from 145 million shares, representing 10.03 percent, to over 160 million shares, or 11.03 percent.

F&N Dairy Investment is a 100 percent-owned subsidiary of Fraser & Neave, a group backed by Thai tycoon Charoen Sirivadhanabhakdi. The fund currently is the second largest shareholder at Vinamilk, after State Capital Investment Corporation (SCIC) with 36 percent.

Vinamilk’s after-tax profit in 2017 reached VND10.2 trillion (US$452 million), up 10 percent year-on-year, according to the company’s financial statement. Its revenue was posted at over VND51 trillion (US$2.2 billion), representing an increase of 9 percent year-on-year, in which domestic sale accounted for VND43.5 trillion (US$1.9 billion), up 14 percent from 2016.

Vietnam’s dairy industry posted revenue of over VND100 trillion (US$4.4 billion) last year, an increase of 10 percent over the previous year, with Vinamilk commanding a market share of around 50 percent, according to the latest statistics.

Vinamilk set its revenue target in 2018 of VND55.5 trillion (US$2.4 billion), up 8.5 percent yearly. Under the plan, Vinamilk estimated its after-tax profit to reach VND10.7 trillion (US$473 million), increasing 4.6 percent over 2017.

The local dairy market is expected to double its size by 2020, reaching $ 8.2 billion as Vietnam’s population is projected to increase by 5 million people and personal income and dairy consumption are foreseen to increase at 15 percent and 7 percent compounded annual growth rate, respectively, informed the EU-Vietnam Business Network (EVBN)’s 2016 report.



Category: Stocks, Vietnam

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