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Vinamilk to sell 15%, reduce State share

Update: January, 31/2005 - 00:00

Vinamilk to sell 15%, reduce State share


by Thuy Anh

HCM CITY — The HCM City Securities Trading Centre will auction 1.287 million Viet Nam Dairy Product Corp (Vinamilk) shares, or 15 per cent, at the Reunification Palace on February 17.

At the auction, Vinamilk will also float almost 208,000 stocks (1.3 per cent) that have not yet been released in previous sales, bringing the number of shares on offer to almost 2.593 million.

The company aims to reduce State ownership, which has a legal capital of VND1,590 billion (US$100 million), from 75 per cent to 60 per cent, and turn it into a public one to satisfy one of the stock market listing requirements.

It is planned that 1.827 million shares, or 11.5 per cent of Vinamilk’s legal capital, will be offered to outsiders.

The remaining 766,000 shares, or 4.8 per cent, will go to the company’s employees at the average bided price.

General Director Mai Kieu Lien said last Friday that the reference price would be VND220,000 for each share that has a face value of VND100,000. It is said that Vinamilk shares were traded at around VND225,000.

Registration for a purchase should be a minimum of 100 shares but the cap is 800,000, according to Tran Dac Sinh, director of the securities trading centre.

Sinh said bidders will be able to place orders in person or via mail, which should be sent to the issuance agent, BIDV Securities Company, HCM City branch, at 146 Nguyen Cong Tru Street, District 1.

Once sales are complete, the State will hold 60.47 per cent, outsiders, 23.23 per cent, and employees, 16.3 per cent.

Vinamilk is a leading company in the dairy industry and runs seven factories nationwide. The company takes the lead in fresh milk, drinking yoghurt and condensed milk. It enjoys 35 per cent of the powdered milk and nutritional market and exports products to markets including the Middle East, the US, Australia and Cambodia.

Last year the company netted VND464 billion and the figure is expected to reach VND527 billion this year. However this year’s dividend will be 15 per cent as in 2004.

On the stock market’s trading, five trading days between January 24-28 saw more than 5.1 million securities change hands, worth VND440.5 billion. Of the trade volume, bonds represented 4.07 million and fund certificates, 244,000 units.

Foreign investors bought 1.346 million securities, paying VND138 billion. They sold 381,000 securities for VND32 billion.

The VN Index declined 1.91 points from a week earlier, before closing last Friday at 234.18.

Sixteen out of 26 listed firms weakened after a trading week. The plastic firm Danaplast suffered the biggest loss of 3.33 per cent to close at VND8,700. Forwarder Transimex Saigon was the least hit among the losers, falling 0.32 per cent to close at VND31,500.

Three companies remained stable, Bach Tuyet Cotton Co (BBT), at VND10,000, Saigon Hotel at VND13,700 and the concrete firm BT 6, at VND31,000.

The general trading company Gilimex was the biggest gainer, rising 8.28 per cent to close at VND34,000.

The company announced earnings of VND8.5 billion in net profit for the fourth quarter of 2004, from its total turnover of VND102 billion.

Its figures for the whole year were VND22.5 billion and VND376 billion, respectively. From each share sold the company earned VND3,348, and paid 16 per cent in dividends. — VNS

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