Singapore Jardine unit ups investment into Vinamilk to $1b for 8.9% stake

Vinamilk products are displayed for sale at a Vinamilk shop in Hanoi, Vietnam May 16, 2016. REUTERS/Kham

Singapore-listed automotive firm Jardine Cycle & Carriage (JC&C) has made two additional purchases of Vinamilk shares after its maiden $616.6 million investment on November 10, to consolidate its presence in the Vietnam’s biggest listed business to 8.9 per cent.

To date, JC&C has become the second largest overseas investor in Vinamilk, holding an 8.9 per cent stake, after ThaiBev’s unit Fraser&Neave which is an 18 per cent shareholder.

In two separate announcements made on Thursday, the automotive major said a transaction of buying more than 36 million Vinamilk shares had been settled by November 15. This acquisition cost it $294.9 million.

The third purchase, settled on November 16, has brought JC&C’s total investment into Vinamilk to more than $1 billion.

Both deals were implemented through the stock market. Meanwhile, the Singapore group acquired the first 5.53 per cent through the open market and an auction by the State Capital Investment Corporation (SCIC), the controlling state shareholder at the dairy firm.

By the time of completion of the latest transaction, the total market value of JC&C’s quoted investment was 2 per cent higher than its aggregate cost.

Foreign investors are collectively holding 56.44 per cent of Vinamilk. The firm’s market capitalisation has soared to $11.7 billion from the $10.9 billion value on November 10 when the SCIC opened bids for its partial divestment.

In December 2016, the state shareholder had offloaded a 5.4 per cent equity interest in Vinamilk to Fraser&Neave. The beverage company has since then also ramped up its investment into Vinamilk through on-market deals.

SCIC’s current ownership of 36 per cent remains veto right for it, even as the sovereign fund has repeatedly marketed that Vinamilk is not a portfolio in which it needs to hold significant interest.

However, the cash cow is still meaningful in generating profits for the state investor.

After Vinamilk, SCIC is conducting a series of divestments from other big businesses, including Vinaconex, FPT Corporation and two leading plastics companies in the country.

Also read:

Singapore’s Jardine Cycle & Carriage acquires 5.53% in Vinamilk for $616.6m

Vietnam to offload 21.8% of construction major Vinaconex on Dec 8

Singapore’s Jardine Cycle & Carriage acquires 5.53% in Vinamilk for $616.6m

Vinamilk sells 3.3% to a foreign investor for $396.5m

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.