Two beverage companies controlled by Thai business magnate Charoen Sirivadhanabhakdi registered to buy 78.38 million shares, or 5.4 per cent of the dairy firm Vinamilk (VNM)’s charter capital on Wednesday.

Vinamilk is the largest stock by market capitalisation in Viet Nam, valued at US$8.6 billion on Thursday.

The Singapore-based F&N Dairy Investment Pte. Ltd. and F&N BEV Manufacturing Pte. Ltd. are subsidiaries of Fraser & Neave Ltd., whose CEO Lee Meng Tat is a member of Vinamilk’s management board.

Each company is picking up 39.19 million shares, or 2.7 per cent of Vinamilk’s shares, according to the HCM City Stock Exchange (HOSE). This is maximum volume of shares each investor is allowed to buy.

This is the maximum percentage each investor is allowed to buy in the forthcoming December 12 auction.

Trading will be conducted based on competitive auctions, negotiated trade and put-through trade, from December 12, 2016, to January 10, 2017.

F&N Dairy Investment is currently Vinamilk’s largest foreign shareholder, with an ownership of 10.95 per cent. The group has been investing in Vinamilk since 2005 and its holding of Vinamilk shares is now worth around $1 billion.

The State Capital Investment Corporation (SCIC) holds the Government’s 45 per cent stake in Vinamilk and foreign investors have long been interested in the dairy firm thanks to its strong prospects.

Starting December 12, SCIC will put 130.6 million shares of Vinamilk on sale, which amounts to 9 per cent of Vinamilk’s charter capital, at VNĐ144,000 per share ($6.32).

As per the SCIC’s divestment regulations, each investor is allowed to buy a maximum of 2.7 per cent Vinamilk’s shares. If the transactions are successful, the two companies will spend at least VNĐ11.3 trillion to own the stakes, raising Fraser & Neave’s total holdings from 10.95 per cent to 16.35 per cent.

Vinamilk shares closed yesterday at VNĐ135,200 per share on the stock market.

Last year, Thai billionaire Charoen bought Việt Nam’s supermarket chain Metro Cash & Carry. — VNS