Vietnam’s state investment firm has received offers from two foreign for stake purchase in the country’s dairy firm Vinamilk.
The two firms will buy a combined 78.38 million shares in the company, according to a statement from the State Capital Investment Corporation (SCIC).
The stake sale is part of Vietnam’s plans to trim its interest in state-controlled businesses and to raise capital, Reuters reported.
SCIC said that the two companies have submitted bids to buy 60% of the total 130.63 million Vinamilk shares being offered for sale.
The investment firm holds 44.7% stake in Vinamilk, which is Vietnam's biggest listed company by market value.
As the stakes offered for sale being small in size, the process to offload the stake in Vinamilk by the Vietnam government has been slow.
The government may not be able to fully sell the 9% stake offered for sale in the dairy firm, with investors deferring their decisions due to “highly restrictive investment caps and unfavourable market conditions,” the publication said.
On 7 December, Fraser & Neave’s subsidiaries F&N Dairy Investment and F&N BEV Manufacturing registered to buy 5.4% of the dairy firm.
Each company showed interest to buy 39.19 million shares, or 2.7% of Vinamilk’s shares, according to the HCM City Stock Exchange (HOSE).
Frase & Neave said: “Should it be successful in its bid for the additional 5.4% stake in Vinamilk costing another $700m, it would have raised its investment in Vinamilk to over $2bn.”
Currently, F&N owns a 10.95% stake in Vinamilk worth $1.4bn, Singapore Business Reported.