01:48 (GMT +7) - Tuesday 06/12/2016

Business

Vinamilk submits proposal on divestment plans

Released at: 22:09, 05/11/2015

Vinamilk submits proposal on divestment plans

Milk giant requests the government consider four issues as it divests from the corporation.

by Son Ho

Vinamilk has submitted four requests to the government on State divestment from the corporation.

The first is that the detailed schedule be revealed by the State Capital Investment Corporation (SCIC), as there are sound macro-economic conditions in place and the stock market has gained the attention of investors from the TPP being signed.

To attract large investors Vinamilk has proposed the government’s 45 per cent stake be sold in large batches. The sale should be conducted no more than three times, with a minimum of 10 per cent on sale each time.

The second request is to increase the maximum threshold for foreign investors to 100 per cent instead of the current 49 per cent, as milk is not a sensitive product. The corporation believes foreign investors would help it take Vietnamese milk to global markets.

The third request is regarding the divestment method, with Vinamilk believing it should be done by auction to ensure publicity and transparency and not have any adverse impact on the stock market. It also pointed out that the State has already made three divestments from Vinamilk by auction and the sale price was much higher than the starting price.

Regarding the criteria for investors purchasing shares, Vinamilk asked that the consulting unit work out the details with the corporation. It believes the criteria should be in accordance with its business philosophy and be to the benefit of shareholders and employees.

The proposal was submitted after there were indications that Fraser & Neave Limited (F&N) from Singapore wanted to buy Vinamilk at a price of $4 billion. F&N Dairy, one of its smaller companies, currently holds more than 11 per cent of Vinamilk. On November 3, however, F&N said it had not made any proposal to Vinamilk.

Vinamilk’s accumulated revenue in the first three quarters of the year was nearly VND29 trillion ($1.3 billion), with profit after tax of VND5.869 trillion ($262.99 million); 35.3 per cent higher than in 2014.

User comment (0)

Send comment