Vietnam’s Vinamilk to raise $319.4m by selling 3.3% stake

Photo: Vinamilk JSC

Vietnam’s biggest listed business, dairy firm Vinamilk, will sell a 3.3 per cent stake on November 10, state shareholder State Capital Investment Corporation (SCICannounced on Wednesday.

By offloading more than 48.3 million shares at VND150,000 apiece, Vinamilk expects to raise VND725 trillion ($319.4 million) from the transaction, which is expected to close within this month.

In December 2016, the dairy company had offered 9 per cent of its equity interest through a public auction but only ThaiBev’s Singapore-based unit F&N had purchased a 5.4 per cent stake to consolidate its holding. The sale fetched Vinamilk around $500 million, marking one of the largest stake sell-downs in Southeast Asia in 2016.

The November 10 auction is to dispose of the remaining portion from last year’s transaction. This time, the SCIC has pledged to avoid vested interest and treat investors equally.

Foreign investors are eligible to acquire the entire 3.3 per cent stake, according to Saigon Securities Inc, which is one of the two bookrunners for the deal.

Last month, SCIC hired UBS AG and the Vietnamese brokerage house to advise on the sale. Saigon Securities had joined Morgan Stanley and VinaCapital in a consortium of advisors for the previous sale.

Vinamilk’s shares closed trading on Wednesday at VND155,000 following the auction price announcement. While the country’s biggest brewer Sabeco has seen a staggering increase in its stock price since its debut late last year to become the highest priced stock currently, Vinamilk retains its top position in terms of market capitalization, which has reached nearly $10 billion.

Sabeco is the second largest listed company with an $8.2 billion market value.

Also Read:

Vietnam’s Vinamilk to sell 3.3% stake on Nov 10, launches offshore roadshows

Vietnam picks UBS, Saigon Securities as advisors for Vinamilk’s 3.3% sale

Singapore Reporter/s

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

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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.