JC&C to divest 4.6% stake at Vietnam's dairy giant Vinamilk to F&N for $228 mln

Singapore-listed Jardine Cycle & Carriage Limited (JC&C) has announced the sale of more than 96 million shares, or a 4.6% stake, in Vietnam’s dairy giant Vinamilk (HoSE: VNM) to F&N Dairy Investments Pte. Ltd., part of the Fraser and Neave (F&N) group controlled by Thai billionaire Charoen Sirivadhanabhakdi.

The sale will be executed through JC&C’s wholly-owned subsidiary Platinum Victory Pte. Ltd. (PVPL) at a total value of VND6.01 trillion ($228 million), or VND62,555 per share, JC&C said in a filing to the Singapore Exchange on Tuesday.

Following completion, PVPL’s shareholding in Vinamilk will fall from 10.62% to 6.02%. PVPL’s representative on Vinamilk’s board will also step down, subject to approval at Vinamilk’s general meeting of shareholders, JC&C said.

Meanwhile, F&N’s combined stake in Vinamilk, held through F&N Dairy Investments Pte. Ltd. and F&N Bev Manufacturing, will rise from 20.39% to 24.99%.

The transaction is expected to be completed within 35 days of the announcement. JC&C said the cash proceeds will be used for internal funding requirements.

Since first investing in Vinamilk in 2005, F&N is estimated to have received about VND16.5 trillion ($626.6 million) in dividends from the Vietnamese dairy producer.

VNM shares were traded at VND63,700 ($2.42) each on mid-Thursday.

Vinamilk recorded consolidated post-tax profit of VND2.51 trillion ($95.42 million) in Q3, up 4.5% year-on-year, according to a company release.

For the first nine months, the figure was VND6.59 trillion ($250.28 million), translating to earnings per share (EPS) of VND2,804 ($0.11).

Consolidated revenue reached VND16.97 trillion ($645 million) in the quarter, up 9.1% year-on-year. For the nine months, the tally was VND46.68 trillion ($1.77 billion), up 0.7%.