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Banking & Finance

SCIC finalizes advisors for Vinamilk sale

Released at: 17:19, 12/10/2016

SCIC finalizes advisors for Vinamilk sale

Photo: Duc Anh

Group of three consultants selected to advise on SCIC's divestment from dairy giant.

by Khanh Chi

The State Capital Investment Corporation (SCIC) has selected consultants to advise on the sale of its 9 per cent stake in the Vietnam Dairy Products JSC (Vinamilk), the largest dairy firm in Vietnam.

The three consultants selected were Morgan Stanley Asia (Singapore) Limited, Saigon Securities Incorporation, and the VinaCapital Corporate Finance Vietnam Company Limited.

A representative from the Public Relations Department at the SCIC confirmed with VET on October 12 that “the financial consulting contract was signed a few days ago and Morgan Stanley will lead the group.”

Neither SCIC nor Vinamilk made any comment.

Under the financial consulting contract signed on October 5 the group of consultants will provide advice on the share sale plan, the initial price, and the selection of local and foreign investors, as well as the implementation of relevant procedures relating to the sale.

The selection of prestigious domestic and foreign financial organizations as consultants will ensure that the sale of State capital in Vinamilk is conducted in a public, transparent and effective manner.

SCIC Chairman Nguyen Duc Chi told a press conference in Hanoi last month that the government holds 45.1 per cent of Vinamilk’s equity and a 9 per cent stake would be sold this year.

He added that the real asset value of the company was under $1 billion, but its market price was up to $9 billion. At the end of last week, Vinamilk’s shares closed down 0.4 points at VND141,600 ($6.3) on the Ho Chi Minh City Stock Exchange (HSX).

Vinamilk was among ten major enterprises whose divestment schemes were discussed at last month’s press conference, which heard that SCIC’s total market capital was some $4.48 billion. It will divest from the remaining enterprises next year, Mr. Chi said.

Morgan Stanley Asia (Singapore) is engaged in providing financial services, offering investment banking (capital raising, M&A, and other advisory services), equity and fixed income research, securities trading, derivatives, commodities, private wealth management and investment management. It operates as a subsidiary of Morgan Stanley (Singapore) Holdings Pte. Ltd.

Saigon Securities Incorporation operates as a financial company in Vietnam. It provides security services as well as consultancy and support services for OTC transactions, margin financing, securities trading support services, e-trading services, research and advisory services, and corporate access services. It also offers investment banking services.

Vinacapital Corporate Finance Vietnam provides financial services in Vietnam, including in the areas of IPOs, mergers and acquisitions (M&A), divestitures, strategic financing, equitization, and strategic partnership formulation. The company serves various companies and public institutions. It operates as a subsidiary of VinaCapital Group Limited.

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