Taking hold
On December 12 the Thai-owned Fraser and Neave completed the purchase of 5.4 per cent of the Vietnamese dairy giant Vinamilk for almost $500 million. Each of F&N’s subsidiaries – F&N Bev Manufacturing and F&N Dairy Investments – bought 2.7 per cent at the starting price of VND144,000 ($6.39) apiece during Vinamilk’s public auction. F&N therefore increased its holding in Vietnam’s largest concern from almost 11 per cent to 16.35 per cent, while Vinamilk’s State shareholder, the State Capital Investment Corporation, saw its holding reduced to 39.35 per cent. This final deal of 2016 was one of 32 conducted throughout the year worth a total of $2.5 billion, according to the latest figures from Mergermarket. Merger and acquisition (M&A) activity in Vietnam was subdued in 2016 in value and volume compared to 2015, which was a record year, with 48 deals worth $4.8 billion, but strong momentum has been maintained for the last five years.
