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

A woman shops for Vinamilk products. Photo from the company's website.

Singapore-listed automotive group Jardine Cycle & Carriage Limited (JC&C) on Monday said it has acquired a total of 5.53 per cent stake in Vietnam Dairy Products JSC (Vinamilk), through two back-to-back transactions, for an aggregate investment of $616.6 million.

Jardine, through its wholly owned subsidiary Platinum Victory Pte Ltd, picked up 3.33 per cent stake in Vinamilk, which conducted its equity auction on November 10, 2017. It acquired the balance shares (amounting to 2.2 per cent stake) through open market purchases.

The State Capital Investment Corporation (SCIC) had last week announced that it had sold 3.33 per cent from its holding in Vinamilk to an undisclosed overseas institutional investor for almost VND9 trillion ($396.5 million). This was the remaining portion of the 9 per cent offer in December 2016 that saw only Fraser & Neave acquire 5.4 per cent for approximately $500 million.

Vinamilk – which has a 58 per cent market share in the local dairy industry – was valued at $10.9 billion on the day of the JC&C investment.

 “The taking of this relevant 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 Vietnamese economy, and consideration will be given from time to time to making further such investments,” the Singapore investor said, in a statement.

JC&C has been present in Vietnam through its 25.1 per cent holding in the country’s largest automotive firm Truong Hai Auto as well as a 22.9 per cent ownership in listed Refrigeration Electrical Engineering Corporation.

JC&C is a unit under diversified group Jardine Matheson, which also has interest in other Vietnamese businesses, including Asia Commercial Bank, Pizza Hut, KFC Vietnam and several real estate assets.

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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.