Full-fat valuation suits Vietnamese dairy giant

Jardine Cycle & Carriage

21/11/2017 02:13

(The author is a Reuters Breakingviews columnist. The opinions 
expressed are her own.) 
    By Clara Ferreira-Marques 
    SINGAPORE, Nov 21 (Reuters Breakingviews) - Vinamilk stock 
is up 48 pct this year, valuing it at $12 bln. It helps that 
regional investors Fraser and Neave and Jardines are building 
big stakes. But even if no takeover follows, the group stands to 
benefit from booming consumption in one of the most promising 
corners of Asia. 
          
    Full view will be published shortly. 
    On Twitter https://twitter.com/claramarquesrtr 
     
    CONTEXT NEWS 
    - The Vietnamese government is selling down its stake in 
selected state-owned firms, including Vinamilk, the dairy firm 
that is Vietnam's largest listed entity. 
    - Vinamilk's share price hit a record of 187,600 dong 
($8.26) on Nov. 20, valuing the company at almost $12 billion. 
    - A Vinamilk stake sale in 2016 drew only one buyer, largely 
because of a ceiling on the size of purchases by any prospective 
shareholder. A sale this month, which removed those 
restrictions, saw demand from 19 investors. 
    - Jardine Matheson, the conglomerate, became the 
second-largest foreign shareholder, building an 8 percent stake 
through its Singapore-listed Jardine Cycle & Carriage. 
    - The largest foreign shareholder is Fraser and Neave, a 
group backed by Thai tycoon Charoen Sirivadhanabhakdi, with 
almost 19 percent.  
    - Other assets on Vietnam's privatisation list include 
brewers Sabeco and Habeco. 
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    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
Jardine Matheson firm builds up over $900 mln stake in Vinamilk  
   urn:newsml:reuters.com:*:nL3N1NM24D 
UBS, Saigon Securities picked as advisors for Vinamilk share 
sale     urn:newsml:reuters.com:*:nL4N1MA1VV 
BREAKINGVIEWS-Bumper listing in Vietnam sets speedy precedent    
 urn:newsml:reuters.com:*:nL3N1ND1D5 
BREAKINGVIEWS-Stars align for Vietnam's privatisation push    
 urn:newsml:reuters.com:*:nL3N1GX181 
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> 
 (Editing by Quentin Webb and Katrina Hamlin) 
 ((clara.ferreira-marques@thomsonreuters.com; Reuters Messaging: 
clara.ferreira-marques.thomsonreuters.com@reuters.net)) 
 
Keywords: VINAMILK INVESTOR/BREAKINGVIEWS