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Vinamilk to gain traction on milk market via GTNFoods
Posted on Thursday, 14 March 2019 13:23
Vinamilk wants to corner more of Vietnam’s milk segment amid fierce competition by acquiring a 46.7 per cent stake in GTNFoods for VND 1,517 billion (USD 65.25 million).

The country’s largest dairy producer has stated its intention of buying 116.71 million shares at a price of VND 13,000 each.

If this tender offer went ahead, it would be the sixth-largest dairy cattle and milk production deal announced globally in 2019 to date, according to Zephyr, the M&A database published by Bureau van Dijk.

However, perhaps more importantly, the investment would give Vinamilk indirect exposure to Moc Chau Milk (MCM), the owner of the largest dairy farm in the north of the country, with an annual output of 100,000 tons of milk.

This subsidiary manages three breeding centres with over 3,000 heads and has a herd totalling 23,500 cows, according to GTNFoods’ website.

Originally established as a diversified holding company, GTNFoods has spent the time since listing in 2014 changing its business focus towards tea, milk and wine.

Today, the group owns a majority stake in Vietnam Livestock, thereby gaining indirect control over a 51.0 per cent stake in MCM, almost all of Vietnam National Tea and a minority investment in LadoFoods, among others.

West Ocean Invest is currently the largest shareholder, with a 28.0 per cent stake, followed by Tael Two Partners (22.0 per cent), and Penm IV Germany, which is one of four funds under PENM Partners (6.0 per cent).

The deal comes after mergers and acquisitions targeting companies based in Vietnam reached a new high of 1,406 deals totalling USD 17,071 million in 2018, according to Zephyr.

There have already been 241 announced in 2019 to date worth an aggregate USD 2,054 million.

© Zephus Ltd