UBS, Saigon Securities selected as advisors for Vinamilk’s 3.3 percent stake sale

Tue Oct 10, 2017 - 12:40pm UTC

Vietnam’s State Capital Investment Corporation (SCIC) has selected Saigon Securities Inc (SSI) and the Singaporean branch of Swiss financial services firm UBS AG to become the advisors for dairy firm Vietnam’s biggest dairy producer Vinamilk next stake sale.

Based in Hanoi, brokerage house SSI is a repeated advisor, along with Morgan Stanley’s Singaporean branch and VinaCapital Corporate Finance Vietnam Limited which had advise on the 9 percent sell-down last year.

In its December offer 2016, Fraser and Neave Limited was the only foreign investor that has acquire a 5.4 percent stake in Vinamilk from the December offer in 2016.

The investment involved nearly US$500 million and was made using its two subsidiaries F&N Dairy Investment Ltd and F&N Beverage Manufacturing Pte Ltd.

This will be a repeat auction of Vinamilk shares that were left unsold after the attempt in December.

Vietnam’s SCIC which owns 39 percent shares in the US$9.5 billion dairy company explained in a statement that the new advisors will help assist the state enterprise divestment for broader privatization.

They will decide on the starting price for the auction, connect to both domestic and international investors, as well as implement the sale.

If the sale is successful this time, SCIC will still be the biggest shareholder with 36% of Vinamilk shares.

According to the country’s business reform and development committee, the disposal of this 3.3 per cent stake could bring more than VND7 trillion (about US$308.4 million) to the state.

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