Thailand’s F&N Dairy Investments buys 96mn shares of Vietnam's largest dairy firm

The transaction, valued at over VND6.011 trillion, equivalent to about US$228 million based on a contractual exchange rate of VND26,343 per U.S. dollar, was recently disclosed on the Singapore Exchange by Jardine Cycle & Carriage Ltd, a Singapore-based investment holding company and the parent of Platinum Victory.

Under the deal, the shares will be transferred at an average price of VND62,555 ($2.37) per share, slightly higher than Vinamilk’s closing price of VND62,000 ($2.35) on Monday.

The acquired stake represents roughly 4.6 percent of Vinamilk’s charter capital.

Payment will be made by Thai Bev, controlled by Thai billionaire Charoen Sirivadhanabhakdi, through its subsidiary F&N.

The transaction is expected to be completed within 35 days from the disclosure date through the Ho Chi Minh City Stock Exchange, after the parties finalize the required reporting and information disclosures.

Once the deal is completed, Platinum Victory’s ownership in Vinamilk will decline from 10.62 percent to 6.02 percent.

Meanwhile, F&N’s total stake in Vinamilk will rise to 24.99 percent from the current 20.39 percent, including 17.69 percent held by F&N Dairy Investments and 2.7 percent owned by F&N Bev Manufacturing, another F&N subsidiary.

The acquisition follows several unsuccessful attempts by F&N to increase its Vinamilk holdings through open-market purchases.

Most recently, the group registered to buy nearly 21 million shares but later withdrew, citing unfavorable market conditions.

F&N, a subsidiary of Thai Bev since 2013, has maintained a long-standing partnership with Vinamilk dating back to the Vietnamese company’s equitization in 2005.

It serves as Thai Bev’s core platform for non-alcoholic beverages and dairy products across Southeast Asia, with Vinamilk identified as a strategic long-term investment underpinning the group’s regional expansion strategy.

Vinamilk has consistently maintained a high cash dividend payout ratio of around 40-60 percent annually since 2011.

As a result, Sirivadhanabhakdi, through his indirect ownership of Vinamilk shares via F&N, has received more than VND15 trillion (about $570 million) in dividends from Vinamilk so far.