After spending over $1 billion on acquiring a large stake in Vinamilk, the largest automotive group from Singapore, Jardine Cycle & Carriage Limited Company (JC&C), has poured VND45 billion ($1.98 million) into acquiring an additional 1.1 million shares in Refrigeration Electrical Engineering Corporation (REE).
According to newswire Vnexpress, JC&C, through its investment fund Platinum Victory Pte., Ltd. completed the purchase of 1.1 million shares in REE to increase its holding to 23.9 per cent.
In late November, JC&C announced that it spent over VND87 billion ($3.8 million) buying 2.1 million REE shares. After the deal, JC&C increased its holding in REE to 23.55 per cent from the previous 22.87 per cent.
JC&C has ambitions to acquire a member in the REE board of directors but fail due to the barrier of foreign ownership limit.
JC&C now holds an aggregate 145.6 million Vinamilk shares, representing approximately 10.0 per cent of the company’s issued share capital. JC&C is now the third largest shareholder, following State Capital Investment Corporation of Vietnam (SCIC) with 36 per cent and Fraser & Neave Ltd. with 18.74 per cent.
The taking of this relevant interest in Vinamilk is in line with JC&C’s strategy of investing in market-leading companies in Southeast Asia. In particular, it increases JC&C’s exposure to the Vietnamese economy and the group is planning on making further such investments.
Along with Vinamilk and REE, JC&C has been present in Vietnam through its 25.1 per cent holding in the country’s largest automotive firm, Truong Hai Auto.
JC&C is 75 per cent held by Jardine Matheson, a diversified business group focused principally in Asia, which also has interest in other Vietnamese businesses, including Asia Commercial Bank, Pizza Hut, KFC Vietnam, and several real estate assets.
Established in 1977, REE is a publicly-traded diversified business group operating in the primary fields of mechanical and electrical engineering services (M&E), manufacturing, assembling and sales of Reetech air-conditioner systems, real estate development and management, and power and water utility infrastructure construction.