Vinamilk shuts down its real estate company

Tuesday, Feb 25, 2014 16:24

General director Mai Kieu Lien checks milk production chains Vinamilk factory in the southern province of Binh Duong.— Photo

HA NOI (Biz Hub) — Vietnam Dairy Product Joint-Stock Co. (Vinamilk) has announced the closure of its real estate and investment company.

This was disclosed in a letter sent to the State Securities Commission and the Ho Chi Minh City Stock Exchange, on February 24, by Vinamilk's general director Mai Kieu Lien.

Lien said the VND160 billion (US$7.6million) real estate company International Real Estate Investment One-Member Co. Ltd. was established as a Vinamilk subsidiary for real estate businesses such as those involved in the brokerage and leasing of real estate and warehouses in Ho Chi Minh City, in 2006.

However, Lien stated that as Vinamilk's strategy is to focus on dairy product manufacturing, its real estate company has not developed any real estate projects.

Thus, Vinamilk has decided to shut down the company.

To date, apart from the real estate company, Vinamilk has owned five subsidiaries and affiliates. The latest subsidiary was established on Feb. 20, 2014, in Poland, with an investment of $3million.

In 2013, Vinamilk's revenue reached VND31.1 trillion ($1.48 billion) and showed profit after tax of VND6.5 trillion ($309.5 million). — VNS

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