Vietnam state investor to sell 3.33 percent of Vinamilk on November 10

Vietnam’s state investor on Monday said it plans to sell 3.33 percent of Vietnam Dairy Products JSC (Vinamilk) on November 10, without the restrictions that applied to a similar sale last year when only a portion of the offering sold.

Vinamilk, Vietnam’s biggest listed firm by market value, is among a handful of state assets to attract significant interest from foreign investors as the government works to reform state-owned enterprises.

A starting price is likely to be announced seven to 10 days prior to the sale date, State Capital Investment Corp Chairman Nguyen Duc Chi said at a media briefing. Chi previously said the sale could fetch VND6.5 trillion to VND7 trillion ($286 million to $308 million).

The November sale will be absent of some of the restrictions applied to last year’s sale, such as a purchase cap on each individual investor, Chi said.

In December, the state investor offered to sell 9 percent of Vinamilk but sold only 5.4 percent to two investors - both units of existing shareholder Fraser and Neave Ltd.

Investors looking to gain a degree of control over Vinamilk were also deterred by the size of stake on offer. The government initially planned to sell its entire 44.7 percent stake.

The government now owns 39.34 percent. If the November sale is successful, its stake will fall to 36 percent - enough to retain veto rights.

The government is trying to divest from hundreds of state-owned enterprises, including brewers Hanoi Beer Alcohol and Beverage JSC (Habeco) and Saigon Beer Alcohol Beverage Corp (Sabeco) where it owns $7.8 billion worth of shares by market value.