Jardine Matheson firm builds up over $900 mln stake in Vinamilk (updated)

Jardine Cycle & Carriage

16/11/2017 08:37

* Jardine C&C unit buys additional 36 mln shares in Vinamilk 
    * Latest purchase follows a 5.53 percent stake in dairy firm 
 
 (Recasts story, adds details on Jardine Matheson, sale process) 
    By Mi Nguyen 
    HANOI, Nov 16 (Reuters) - A Jardine Matheson company has 
built up an 8 percent stake worth $911.5 million in Vinamilk 
 VNM.HM , Vietnam's biggest-listed company, highlighting a 
strong interest from foreign groups to expand in one of Asia's 
fastest-growing economies. 
    Singapore-listed Jardine Cycle & Carriage Ltd  JCYC.SI  
(JC&C) on Thursday said one of its wholly-owned units had bought 
an additional 36 million shares in Vinamilk, just days after it 
paid $616.6 million for a 5.53 percent stake in the dairy firm. 
    The sale comes amid Vietnam's broader effort to trim its 
stakes in state-owned firms, including the country's biggest 
brewer Sabeco  SAB.HM , Vietnam Airlines  HVN.HNO  and Habeco 
 BHN.HM , many of which have low profitability. But progress has 
been slow, given the small sizes offered, sizeable state control 
and concerns about vested interests.  urn:newsml:reuters.com:*:nL4N1M81XO 
    A Vinamilk stake sale in 2016 drew in only one buyer, but 
last week's sale saw high demand from 19 investors in Vietnam 
and overseas after the state investor removed some of the 
restrictions applied to the earlier sale.  urn:newsml:reuters.com:*:nL3N1NG46G 
    JC&C's previous purchase of Vinamilk stock was made through 
the open market and an auction by the State Capital Investment 
Commission of Vietnam, the largest shareholder in the dairy 
firm. The latest purchases were made via on-market deals only. 
 urn:newsml:reuters.com:*:nL3N1NJ1NT  
    The unit is now Vinamilk's No.2 foreign shareholder, after 
the 16 percent stake controlled by Fraser & Neave Ltd  FRNM.SI , 
a group backed by Thai tycoon Charoen Sirivadhanabhakdi. 
    JC&C is part of Hong-Kong based Jardine Matheson, one of 
Asia's biggest conglomerates which has interests in luxury 
hotels, motor vehicles, property, food retailing, transport 
financial services and agribusiness. 
    Officials at the Ho Chi Minh stock exchange did not provide 
further details on the latest purchase. 
    Vinamilk shares rose as much as 1.2 percent to 184,000 dong 
a share ($8.11 each) on Thursday. 
 ($1 = 22,701 dong) 
 
 (Reporting by Mi Nguyen, writing by Anshuman Daga; Editing by 
Himani Sarkar) 
 ((mi.nguyen@thomsonreuters.com; +84 24 38259623; Reuters 
Messaging: mi.nguyen.thomsonreuters.com@reuters.net)) 
 
Keywords: VINAMILK SALE/