SCIC reveals initial price for Vinamilk auction

State Capital Investment Corporation (SCIC) has announced the initial price of VND150,000 ($6.62) piece for Vietnam Dairy Product JSC (Vinamilk)’s shares in its second divestment round.

SCIC set a higher offering price than in the first divestment round

Investors’ registered price for Vinamilk will not be less than SCIC’s offered price as well as Vinamilk’s floor price on the transaction session on November 10, which is the date of the second auction.

Despite the fact that Vinamilk’s first divestment round failed as 40 per cent of the shares were unmarketable, at the second round SCIC set an even higher price.

Vinamilk organised three roadshows at the Ho Chi Minh City Stock Exchange, Singapore, and Hong Kong. Accordingly, at the roadshow organised at HoSE, Mai Kieu Lien introduced Vinamilk to investors, while in Hong Kong and Singapore, SCIC organised non-deal roadshows. 

Previously, in mid December 2016, F&N Beverages Manufacturing Sdn., Bhd. and F&N Dairy Investments Pte., Ltd., the two 100-per-cent-owned subsidiaries of Fraser & Neave Ltd. (F&N), spent VND11.3 trillion ($499.56 million) buying a total of 78.38 million shares, equalling a 5.4 per cent stake in Vinamilk.

The share volume bought was equal to 60 per cent of the shares put on sale.

After the sale, F&N Dairy Investments Pte., Ltd., has made several attempts to buy more of Vinamilk’s stocks, but failed.

At present, the company holds a 16.04 per cent stake, equivalent to 232.7 million shares in Vinamilk and F&N Beverages Manufacturing Sdn. Bhd holds 2.7 per cent.

RELATED CONTENTS:
ROS, Vinamilk, Military Bank cushion VN-Index
SCIC to divest three beverage giants
SCIC to auction 3.33% of Vinamilk stake next month
SCIC gathers wind for second divestment round in Vinamilk
SCIC urged to improve Vinamilk auction method
SCIC to divest additional 3.33 per cent stake in Vinamilk in October
Vinamilk mulls over new dairy cow farm in Quang Ngai
F&N’s subsidiary undeterred in appetite for Vinamilk shares

By Ha Vy