SCIC divests its stake in Vinamilk based on respect for the market.

(Baonghean.vn) - On the afternoon of November 30th, the State Capital Investment and Business Corporation (SCIC) held a press conference regarding the public offering of Vinamilk shares.

Mr. Nguyen Duc Chi, Chairman of the SCIC Board of Members, stated that the reason for this policy, instead of selling to large investors in large lots, is that SCIC is following the Prime Minister's directive to offer shares widely to investors. Therefore, dividing the shares into smaller lots will allow more investors to purchase VNM shares.

According to the announced regulations, on December 12th, SCIC will offer 130.6 million VNM shares for sale at a starting price of VND 144,000 per share. The volume increment is 10 shares, and the price increment is VND 100. The minimum purchase quantity is 20,000 shares (eligible for negotiated transactions as per regulations). The maximum number of shares that can be registered for purchase is 39,189,150 shares (i.e., 2.7% of the charter capital). If the sale is successful, SCIC could earn at least VND 18,810 billion, equivalent to over USD 840 million.

The Ministry of Finance organized a conference in Hanoi in 2016 to disseminate regulations on divestment, share sales, registration of transactions, and listing on the stock market.

Regarding the division of shares into lots of 2.7%, Mr. Nguyen Duc Chi stated that each investor will be allowed to purchase a maximum of 39.19 million VNM shares and a minimum of 20,000 shares, as per current regulations on the Ho Chi Minh City Stock Exchange. This issue has been thoroughly discussed internally between SCIC and Vinamilk, with the aim of attracting as many investors as possible to purchase these shares. Therefore, SCIC has organized extensive investment promotion activities, both in foreign markets and in several foreign securities publications. The large number of interested investors, both domestic and foreign, facilitates access to information, contributing to the auction's success as expected.

Regarding the reason for the price of VND 144,000 per share, SCIC stated that it had repeatedly reported on valuation methods for VNM shares, based on the average trading volume of the stock over the last 30, 60, and 90 trading sessions to find a suitable price that met SCIC's expectations and market expectations for inclusion in the auction regulations for investor participation. This is the expected price, and there are several safety nets to ensure the asset is offered in the most transparent and secure manner.

SCIC is not afraid of the volatile market fluctuations because, having entered the market, it must accept the inherent laws of the market for both buyers and sellers. With confidence in its ability to succeed, SCIC considers all issues based on the principle of respecting and accepting market principles, working meticulously and systematically, and striving to achieve the highest possible goals – SCIC leaders affirmed.

Regarding investment promotion results, SCIC stated that it organized sales conferences in three major financial centers: Singapore, Hong Kong, and London. Nearly 100 investors were met, and afterwards, almost 20 investors returned to ask questions and share more information. Some investors directly met with Vinamilk to conduct further research. It is noteworthy that Vinamilk does not have a strategic investor; only large investors are buying shares. However, SCIC has not yet received any offers from large investors regarding whether or not to buy, and they have the right to participate like other investors, but if they do, they can only buy a maximum of 2.7% – SCIC leaders affirmed.

Red River