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Jardine Cycle acquires stake in Vietnamese dairy firm Vinamilk

FBR Staff Writer Published 14 November 2017

Singapore-based Jardine Cycle and Carriage (JC&C) has agreed to acquire 5.53% stake in Vietnam Dairy Products Joint Stock Company (Vinamilk) for $616.6m through its subsidiary Platinum Victory.

The stake has been purchased via an auction held by Vinamilk’s largest stakeholder State Capital Investment Commission of Vietnam (SCIC) to invite investments in the Vietnamese dairy producer.

Vinamilk, which is headquartered in Ho Chi Minh City, has a market share of nearly 58% in Vietnam.

Founded in 1976, Vinamilk had changed its original name Vietnam Milk Company to Vietnam Dairy Products Joint Stock Company in 2003.

Currently, the dairy producer operates 13 dairy processing plants. It also owns 10 cow farms and boasts of 240,000 retailers in Vietnam as its exclusive distributors. Vinamilk has also established its footprint outside Vietnam, in more than 43 countries and territories.

Vinamilk’s products include a range of liquid milk, yogurt, powdered milk, infant cereals, condensed milk, special nutrition products for adults, cheese, ice cream to go along with soymilk and beverages.

In a statement, JC&C said: “The taking of this Relevant Interest in Vinamilk is in line with the JC&C group’s strategy of investing in market leading companies in Southeast Asia.”

The company further added that the transaction specifically boosts its exposure to the Vietnamese economy. It would also consider making other such investments in the future.

JC&C revealed that it will fund the Vinamilk transaction by using its internal resources and external borrowings.

A member of the Jardine Matheson Group, JC&C calls itself as long-term shareholder of market-leading businesses.


Image: Vinamilk Organic Da Lat dairy farm. Photo: courtesy of Vinamilk.