Vinamilk’s grass for cattle feed which meets organic standards and contains no chemicals in the southern province of Lam Dong’s Don Duong District (Photo: VNA) Hanoi (VNA) – Vietnam’s sovereign fund StateCapital Investment Corporation (SCIC) will sell 3.33 percent of the State’scapital in the Vietnam Dairy Products Joint Stock Company (Vinamilk) onNovember 10 this year, the SCIC announced on October 16.
This is the second sale of the State’s capital in Vietnam’s biggestdairy firm, with the first also run by the SCIC in December last year.
Details on the upcoming auction, scheduled for the HCM StockExchange, have not been disclosed, but the advisor consortium for the sale –the Singaporean branch of Swiss financial services firm UBS AG and SaigonSecurities Inc (SSI) – will advise on the sale planning, set the initial price,seek foreign and domestic investors, and organise the sale.
SCIC holds a 39.34 percent stake in Vinamilk, equivalent tonearly 571 million shares as of December 31, 2016.
In the previous deal that took place in December 12, 2016,the SCIC offloaded more than 130 million shares in the dairy firm but sold only60 percent of them.
Singapore-based dairy group Fraser and Neave Ltd (F&N)was the only foreign investor interested in Vinamilk’s shares then. Its twosubsidiaries F&N Dairy Investment Ltd and F&N Bev Manufacturing Pte Ltdspent nearly 500 million USD at the auction.
The advisory firms for the previous deal were the Singaporeanbranch of Morgan Stanley Asia Limited, SSI and VinaCapital Corporate Finance VietnamLimited.
SCIC Chairman Nguyen Duc Chi said the SCIC and the advisorconsortium are working to organise two non-deal roadshows abroad – in Singaporeand Hong Kong. In Vietnam, the SCIC will hold a roadshow in HCM Stock Exchangeon October 18.
About 24 investors in Singapore have expressed interest inthe auction, along with 11 in Hong Kong. Most of them are new investors andlarge international investment funds which want private discussions, Chi said,adding that the SCIC has yet to receive an offer from F&N.
F&N is now Vinamilk’s largest foreign shareholder, with atotal 18.74 percent of shares.
In this offering, the SCIC will not either limit theproportion of shares one investor can buy or set criteria for investors, Chisaid.
With regard to the initial selling price, the SCIC chairmansaid: “We have not decided the price yet. We expect to disclose it about 7-10days prior to the auction so that the starting price will be close to themarket price and not affect Vinamilk’s share price.”
He said the starting price of 154,000 VND (6.78 USD) pershare was suggested by the Steering Committee for Enterprise Renewal andDevelopment but investors must wait until the auction date for the officialprice.
Vinamilk’s shares closed on October 16 down 0.5 percent at 148,600VND a share. The share price has increased 18.3 percent since the beginning ofthis year.
The SCIC will make public the information and draftregulations on the share sale by October 21 and announce the initial sellingprice and receive deposits from November 1.
Regarding foreign investors’ concerns about registrationprocedures, SCIC Deputy General Director Nguyen Chi Thanh said the SCIC hasreported to the Prime Minister, the Ministry of Finance, the State Bank of Vietnamand the State Securities Commission to create favourable conditions forinvestors to participate in the auction, such as accepting deposits in USdollar and extending time for registering transaction codes.
Listed companies shall be exempt from making a public bid butmust send interest of purchase to the auction board seven days before theauction.-VNA
This is the second sale of the State’s capital in Vietnam’s biggestdairy firm, with the first also run by the SCIC in December last year.
Details on the upcoming auction, scheduled for the HCM StockExchange, have not been disclosed, but the advisor consortium for the sale –the Singaporean branch of Swiss financial services firm UBS AG and SaigonSecurities Inc (SSI) – will advise on the sale planning, set the initial price,seek foreign and domestic investors, and organise the sale.
SCIC holds a 39.34 percent stake in Vinamilk, equivalent tonearly 571 million shares as of December 31, 2016.
In the previous deal that took place in December 12, 2016,the SCIC offloaded more than 130 million shares in the dairy firm but sold only60 percent of them.
Singapore-based dairy group Fraser and Neave Ltd (F&N)was the only foreign investor interested in Vinamilk’s shares then. Its twosubsidiaries F&N Dairy Investment Ltd and F&N Bev Manufacturing Pte Ltdspent nearly 500 million USD at the auction.
The advisory firms for the previous deal were the Singaporeanbranch of Morgan Stanley Asia Limited, SSI and VinaCapital Corporate Finance VietnamLimited.
SCIC Chairman Nguyen Duc Chi said the SCIC and the advisorconsortium are working to organise two non-deal roadshows abroad – in Singaporeand Hong Kong. In Vietnam, the SCIC will hold a roadshow in HCM Stock Exchangeon October 18.
About 24 investors in Singapore have expressed interest inthe auction, along with 11 in Hong Kong. Most of them are new investors andlarge international investment funds which want private discussions, Chi said,adding that the SCIC has yet to receive an offer from F&N.
F&N is now Vinamilk’s largest foreign shareholder, with atotal 18.74 percent of shares.
In this offering, the SCIC will not either limit theproportion of shares one investor can buy or set criteria for investors, Chisaid.
With regard to the initial selling price, the SCIC chairmansaid: “We have not decided the price yet. We expect to disclose it about 7-10days prior to the auction so that the starting price will be close to themarket price and not affect Vinamilk’s share price.”
He said the starting price of 154,000 VND (6.78 USD) pershare was suggested by the Steering Committee for Enterprise Renewal andDevelopment but investors must wait until the auction date for the officialprice.
Vinamilk’s shares closed on October 16 down 0.5 percent at 148,600VND a share. The share price has increased 18.3 percent since the beginning ofthis year.
The SCIC will make public the information and draftregulations on the share sale by October 21 and announce the initial sellingprice and receive deposits from November 1.
Regarding foreign investors’ concerns about registrationprocedures, SCIC Deputy General Director Nguyen Chi Thanh said the SCIC hasreported to the Prime Minister, the Ministry of Finance, the State Bank of Vietnamand the State Securities Commission to create favourable conditions forinvestors to participate in the auction, such as accepting deposits in USdollar and extending time for registering transaction codes.
Listed companies shall be exempt from making a public bid butmust send interest of purchase to the auction board seven days before theauction.-VNA
VNA
