F & N plans to increase its stake in Vietnam's Vinamilk by up to 4.6% for 295 million yuan | Lianhe Zaobao

F & N announced on Tuesday (December 16) plans to increase its stake in the Vietnamese dairy company Vinamilk by up to 4.6%. Currently, F & N holds approximately 426.19 million shares of Vinamilk through its wholly-owned subsidiaries FNDI and F&NBev, accounting for about 20.39% of Vinamilk's issued capital. After the transaction is completed, the group's total shareholding will increase to approximately 522.80 million shares, representing 24.99% of the issued capital. The total shareholding rate of F & N is below the 25% mandatory takeover threshold set by Vietnamese law. The group stated that it currently has no intention to increase its stake in Vinamilk to 25% or more. Vinamilk is a publicly listed company on the Ho Chi Minh Stock Exchange in Vietnam. According to the terms of the share purchase agreement, FNDI will purchase up to 96.09 million shares from Jardine C&C's subsidiary Platinum Victory Pte Ltd at a price of VND 62,555 per share (approximately SGD 3.07), with the acquisition price subject to customary adjustments based on dividends, rights issues, and bonus shares. Further Reading F & N's annual net profit fell 6.4% year-on-year to SGD 141.3 million F & N's net profit for the first nine months fell 3.9% to SGD 120 million as Vinamilk's revenue contribution decreased The cash purchase price will be paid by FNDI and will be funded through internal resources and borrowing. As of the end of September this year, the public market value of the acquired shares was approximately SGD 29.1 million, based on the volume-weighted average price (VWAP) of SGD 3.03 on December 15. F & N's stock price fell 0.68% to SGD 1.47 at the close of trading on Tuesday