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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