State Investment Company to sell its capital at Vinamilk

SCIC to sell its capital at Vinamilk, the biggest milk company in Vietnam. (Source: doanhnghieppvn.vn)

Hanoi (VNA) – Dang Quyet Tien, Deputy Director of the Agency for Corporate Finance under the Ministry of Finance, told the press on September 14 that the divestment of State capital at Vinamilk will be carried out this year.

The State Capital Investment Corporation (SCIC) has been accelerating capital divestment at Vinamilk and the work at other nine enterprises is underway as well, Tien added.

Eight of the 10 companies which the SCIC will divest from list shares on the two national stock exchanges, including dairy giant Vinamilk, software producer FPT Corp, Bao Minh Insurance Corp, Tien Phong Plastic Co and Binh Minh Plastic Co.

The SCIC will not sell its entire stake in Vinamilk because of the company’s scale and the possible impact on the market.

Many foreign investors are keen to buy equity in Vietnamese brewery companies like Habeco and Sabeco.

On concerns over the loss of national brands, Tien said it is inevitable when companies are equitised.

He said the government can still keep brands via technical barriers such as golden share to hold veto right on any change of brands.-VNA