JavaScript is off. Please enable to view full site.

​Jardine Cycle buys 5.5 pct stake in Vietnam's Vinamilk for $617 mln

Monday, November 13, 2017, 17:23 GMT+7
​Jardine Cycle buys 5.5 pct stake in Vietnam's Vinamilk for $617 mln
Vinamilk products are displayed for sale at a Fivimart supermarket in Hanoi, Vietnam, October 7, 2016. Photo: Reuters

Singapore-listed Jardine Cycle and Carriage Ltd said on Monday one of its units has agreed to buy a 5.53 percent stake in Vietnamese dairy firm Vinamilk, the country’s biggest listed company, for $616.6 million.

Vinamilk is among a handful of state assets to attract significant interest from foreign investors as the government works to reform state-owned enterprises.

Jardine Cycle, part of the diversified Jardine Matheson group, said it bought the shares through the open market and participation in an auction by the State Capital Investment Commission of Vietnam.

“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,” it said in a filing to the Singapore bourse on Monday.

The deal increases Jardine Cycle’s exposure to the Vietnamese economy, and it remained open to making further such investments, it added.

The Ho Chi Minh Stock Exchange said last week that an overseas institutional investor had bought a stake in Vinamilk, but did not name the investor.

Last year, SCIC offered to sell 9 percent of Vinamilk but sold only 5.4 percent. Investors looking to gain a degree of control over Vinamilk had been partly deterred by the size of stake on offer.

Vinamilk shares rose nearly 4 percent on Monday to hit a record 181,500 dong.

Reuters

More

Read more

;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news