SCIC to sell over 48 million VNM shares
SCIC to sell over 48 million VNM shares
The State Capital Investment Company (SCIC) will further sell over 48 million shares in Viet Nam’s top listed firm by market value, Vinamilk, this October.
At the press meeting on Friday in Ha Noi, Nguyen Duc Chi, Chairman of SCIC, announced the State capital divestment itinerary of the sale of Vinamilk shares, which is coded as VNM on the HCM Stock Exchange.
Chi stated that the Government has allowed SCIC to carry out the further stake sale, which is equal to 3.33 per cent of Vinamilk’s charter capital in 2017.
He explained that this 3.33 per cent stake is part of the 3.6 per cent of the company’s charter capital that was not sold during a previous sale at the end of 2016. In the 2016 sale, SCIC planned to sell 9 per cent of Vinamilk’s charter capital, but only 5.4 per cent was successfully sold due to highly restrictive investment caps and unfavourable market conditions.
Chi added that detailed information related to the upcoming sale, such as initial price, trading mode and minimum volume, will be made public in September to assure potential investors.
While organising the sale, SCIC will work closely with Vinamilk to highlight potential investment opportunities for domestic and foreign investors, Chi further added.
Chi also stressed that the sale will be transparent and SCIC would try to remove all "limitations" that were put in place last year to assure investors.
Last year, SCIC sold 5.4 per cent of Vinamilk to the Singapore-listed, Fraser and Neave Ltd, the second largest investor in the company after SCIC, which owns 39.34 per cent.
It is estimated that the stake sale would fetch VND6.5-7.0 trillion (US$285.9-$307.9 million), Chi said.
Vinamilk is seen as one of the country’s most attractive company as it commands around half of the domestic market for dairy goods and has seen steady earnings growth. The company posted after-tax profit of VND5.85 trillion in the first half of this year, up 17 per cent year-on-year.
Vinamilk shares closed flat at VND154,000 on Friday.
