Fraser and Neave (F&N) has announced plans to acquire 4.6% additional shares in Vietnam Dairy Products Joint Stock Company (Vinamilk) from Jardine Cycle & Carriage for about VND6,011,200 million ($295 million).
F&N, through its wholly-owned subsidiary FNDI will acquire up to 96,094,631 shares in Vinamilk. It currently holds 426,185,235 shares in Vinamilk, representing approximately 20.39% of the issued share capital of the company.
The completion of the proposed acquisition will see the group increasing its effective interest in Vinamilk to 24.99%.
The sale is consistent with JC&C’s strategy to build a focused portfolio that enhances shareholder value, says the Jardine Matheson subsidiary in its separate statement.
Upon completion of the sale, JC&C's stake in Vinamilk will drop from 10.62% to 6.02%.
Various entities that are part of the Jardine Matheson group of companies, such as DFI Retail Group, Hongkong Land Holdings, have been actively monetising their assets in the last year or so.
See also: HG Metal to acquire leasehold industrial property at 47 Tuas View Circuit for $20.8 mil
F&N says that Vinamilk is one of Asia’s leading dairy companies recognised for its strong brand portfolio, extensive distribution network, and resilient financial performance.
The acquisition advances F&N’s regional dairy strategy by deepening exposure to Vietnam’s dynamic dairy market and creating opportunities to leverage complementary capabilities across dairy farming, manufacturing, innovation, and distribution.
Shares in F&N closed 1 cent lower or 0.676% down at $1.47 on Dec 16.
