Vinamilk’s subsidiary to remove foreign ownership limit, list shares on exchange

The Vinamilk’s unit plans to remove some irrelevant business lines including veterinary service, transport, real estate, tourism to meet conditions allowing foreign investors to own up to 100 stake, the company said in documents seeking shareholders’ approval. 

Meanwhile, Moc Chau Milk will focus on its core business of dairy farming, milk processing and dairy product production.

On share listing, the company’s board plans to proceed the listing procedure no more than nine months after getting shareholders’ approval.

It is also seeking approval to issue a total of 43.2 million new shares to increase charter capital to VND1.1 trillion ($47.2 million) from currently VND668 billion ($28.7 million).

The company will issue 3.34 million shares to existing shareholders. Shareholders will have right to buy five new share at VND20,000 apiece on every existing 100 shares. Its strategic investors include Vinamilk (HoSE: VNM) and GTNFoods (HoSE: GTN).

Moc Chau Milk also plans to issue 668,000 ESOP shares at VND10,000 apiece.

The company’s board also seeks the General Meeting of Shareholders’ approval to invest in a new dairy cow farm with 4,000 heads combined with eco-tourism and upgrade the existing dairy farm to 2,000 cows.

Moc Chau Milk, formerly known as Moc Chau Military Farm, was established in 1958. The company transformed into a joint stock company in 2005. The State divested all capital in 2016 and GTNFoods held 51% stake.

In 2019, Vinamilk increased holding in GTNfoods to 75% and Vinamilk indirectly holds 51% of stake in Moc Chau Milk.

Currently 3 out of 5 members of the Board of Directors of Moc Chau Milk are Vinamilk’s representatives. Vinamilk's CEO Mai Kieu Lien was elected as the chairwoman the company.