Vinamilk seeks more foreign stakes

04.11.2015

HA NOI (VNS) — The Viet Nam Dairy Products Joint Stock Company (Vinamilk) has proposed that the Government raise limits on foreign stakes to 100 per cent of the business, cafef.vn reports.
The dairy industry is not a sensitive one that affects national food security. The foreign investors‘ ownership of the majority stake in Vinamilk is not synonymous with the elimination of a Vietnamese trademark, but rather, it will support Vinamilk in penetrating the world market.
The proposal, which includes methods for selling State-owned capital in Vinamilk, has been sent to the Prime Minister and National Assembly’s Committee for Economic Affairs. It aims to enhance the effect of State divestment in the business and provides a divestment itinerary and the methods and norms for selecting investors.
The business has asked the Government to quickly announce the State’s capital divestment itinerary to help investors prepare. Vinamilk said this was the right time for a divestment. The itinerary should be divided into three stages, and each should feature a minimum divestment of 10 per cent of Vinamilk’s charter capital.
Vinamilk said it was necessary to hire an international financial consulting organisation to hold auctions. Meanwhile, the norms for selecting investors to take part in the auction should be discussed with Vinamilk to secure the company’s operations after the State has divested its capital.
The State Capital Investment Company (SCIC) holds 45.1 per cent of Vinamilk’s stakes, worth almost $2.5 billion, which is too high a price for most domestic investors.
The company is the largest listed company in Viet Nam, with a market value of VND127.2 trillion ($5.7 billion), as of October 14.
He said the auction of shares in businesses such as Vinamilk and FPT would attract investors. If he had the money, he said he would not hesitate to invest in Vinamilk. The SCIC only needs to set a date and issue detailed procedures for offering the State’s stakes in Vinamilk. — VNS
Source VietNamNews