Tobacco giant Vinataba to sell entire stake in instant noodle maker Colusa-Miliket

State-owned Vietnam National Tobacco Corporation (Vinataba) plans to divest its entire 20% stake in Colusa-Miliket, the company behind the iconic “Miliket” (two-shrimp) instant noodle brand, seeking to raise at least VND114 billion ($4.32 million).

Vinataba, currently the third-largest shareholder of Colusa-Miliket which is listed on the unlisted public companies market UPCoM as CMN, will auction all 960,000 shares at 10:30 a.m. on December 18 at the Hanoi Stock Exchange (HNX).

The starting price is set at VND119,500 ($4.53) per share, nearly double the stock’s closing price last week. Foreign investors are barred from participating due to the company’s 5% foreign ownership cap.

The corporation said it opted against selling the shares directly on the UPCoM because liquidity is low and prices fluctuate sharply. Over the past year, CMN has traded between VND45,000 and VND67,000 ($2.54), far below the valuation defined by an independent auditor. The stock regularly posts no trading activity.

According to Vinataba, auctioning the entire block at once is expected to attract financially capable investors seeking a sizable stake and managerial influence in Colusa-Miliket, while also allowing Vinataba to avoid multiple sales.

The divestment news has already fueled buying interest. CMN has hit the ceiling price for three consecutive sessions, reaching VND74,200 ($2.81) on Monday, with volume surging after nearly two weeks of inactivity.

Colusa-Miliket traces its roots to the 2004 merger of two long-standing instant noodle producers - Colusa Food Processing and Miliket Food. The company was officially established in 2006 and is headquartered at 1230 Kha Van Can street, Linh Xuan ward, Ho Chi Minh City. It has a charter capital of VND48 billion ($1.82 million) and is led by general director Tran Hoang Ngan.

The company operates a factory capable of producing 500,000 noodle packs per day and maintains a distribution network of more than 200 distributors nationwide. Miliket, famous for its kraft-paper packaging, was once a dominant brand before 1975 and remains a cultural icon, though it now faces fierce competition from Acecook, Masan, and Uniben.

Between 2022 and 2024, Colusa-Miliket recorded consistent revenue growth, while annual profits ranged from VND20.92 billion in 2023 to VND23.05 billion ($873,669) in 2024.

As of December 31, 2024, the company reported no outstanding loans and total assets exceeding VND300.3 billion ($11.38 million). This year, it targets revenue of VND868 billion ($32.9 million), up 14% year-on-year, with pre-tax profit expected to remain stable at VND29 billion ($1.1 million).

In the first half of the year, it achieved VND400 billion in revenue and roughly VND14 billion in pre-tax profit, nearly achieving half of the respective annual targets.

Vinataba’s broader divestment plan

In addition to Colusa-Miliket, Vinataba will divest from a series of companies through block auctions on the Hanoi Stock Exchange, with the auctions expected to take place in late December.

It has approved the auction of 385,350 shares of Nada Beer JSC at a starting price of VND17.57 billion ($666,022). The auction is scheduled for 9 a.m. on December 19. Nada Beer is headquartered in the northern province of Ninh Binh and operates in the beer manufacturing sector.

Vinataba will also auction its stake in confectionery maker Hai Ha-Kotobuki Co., Ltd., with the session set for 10:30 a.m. on December 19 and a starting price of VND177 billion ($6.7 million).

At 2 p.m. on December 19, the corporation will auction 502,620 shares of Dalatbeco JSC, with a starting price of VND9.9 billion ($375,242) for the lot. Dalatbeco, based in the central province of Lam Dong, operates mainly in wine production and trading.

Furthermore, at 9 a.m. on December 18, Vinataba will auction 1,625,000 shares of Hanoi-based Lialama Real Estate JSC at a starting price of more than VND38 billion ($1.44 million).