Domestic investors have been caught off guard by recent moves by foreignstrategic investors to buy stakes in Vietnamese enterprises atabove-market prices.
Last week, Singapore-based StreetcarInvestment Holdings, a subsidiary of leading global spirits makerDiageo, offered to buy another million shares in Hanoi Liquor JointStock Co (Halico) at a price of 213,600 VND (10.40 USD) per share.
Since Halico shares are traded on the over-the-counter (OTC) market ataround 100,000 VND (4.85 USD) a share, the sky-high price offered byDiageo made many market insiders wonder whether this was not merely apurely financial investment but preparation for a furture takeover.
Diageo had purchased about 5 million shares of Halico from VinaCapitalVietnam Opportunity Fund Ltd at a similar price back in January,representing a 23.6-per-cent stake in the company. With the new deal,Diageo would raise its holdings in Halico to 30 percent, enabling themto participate in Halico's board of directors and influence companymanagement.
A director of a Hanoi-based securities companywho requested anonymity said it was too soon to confirm a takeover andthat, moreover, it was no easy matter to take over a large State-ownedcompany like Halico.
However, since it cost foreign firms alot of time and money to establish distribution networks in Vietnam, a partnership with Halico, a longstanding local company with a greatmarket share, was a solid strategy in itself for penetrating theVietnamese market, he said.
"The deal is expected tobenefit both companies," he added, noting Halico management alsobelieved Diageo could help take the company to greater heights.
Besides the Halico deal, Oman Investment Fund paid 42.4 million USD inApril to buy a 12.6-per-cent stake in PetroVietnam Insurance (PVI),equivalent to over 40,000 VND (2 USD) a share – double the price of PVIshares on the stock market./.
Last week, Singapore-based StreetcarInvestment Holdings, a subsidiary of leading global spirits makerDiageo, offered to buy another million shares in Hanoi Liquor JointStock Co (Halico) at a price of 213,600 VND (10.40 USD) per share.
Since Halico shares are traded on the over-the-counter (OTC) market ataround 100,000 VND (4.85 USD) a share, the sky-high price offered byDiageo made many market insiders wonder whether this was not merely apurely financial investment but preparation for a furture takeover.
Diageo had purchased about 5 million shares of Halico from VinaCapitalVietnam Opportunity Fund Ltd at a similar price back in January,representing a 23.6-per-cent stake in the company. With the new deal,Diageo would raise its holdings in Halico to 30 percent, enabling themto participate in Halico's board of directors and influence companymanagement.
A director of a Hanoi-based securities companywho requested anonymity said it was too soon to confirm a takeover andthat, moreover, it was no easy matter to take over a large State-ownedcompany like Halico.
However, since it cost foreign firms alot of time and money to establish distribution networks in Vietnam, a partnership with Halico, a longstanding local company with a greatmarket share, was a solid strategy in itself for penetrating theVietnamese market, he said.
"The deal is expected tobenefit both companies," he added, noting Halico management alsobelieved Diageo could help take the company to greater heights.
Besides the Halico deal, Oman Investment Fund paid 42.4 million USD inApril to buy a 12.6-per-cent stake in PetroVietnam Insurance (PVI),equivalent to over 40,000 VND (2 USD) a share – double the price of PVIshares on the stock market./.
