Vinamilk fails to win support for overseas listing

TN News

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Vietnam's top dairy firm Vinamilk may drop its plan to issue shares on overseas stock exchanges due to lack of support from its shareholders.

The Vietnam Economic Times said in a report Sunday that the company will instead seek approval from its shareholders to issues shares in Vietnam and raise the ratio of foreign holdings at a meeting on March 25. It is expected to issue 10.7 million shares, representing 3 percent of the company's registered capital, the report said.

Vinamilk, listed on the Ho Chi Minh Stock Exchange under the code VNM, announced in November 2008 that it had secured approval to issue nearly 8.8 million new shares on Singapore's stock exchange. The debut would take place "when market conditions are favorable", it said.

However, many shareholders and investors found the plan unfeasible, theVietnam Economic Times report said.

Vinamilk stock has risen 7 percent so far this year. Last year it was ranked among top-performing small-to-midsize enterprises in the Asia-Pacific region by the Forbes magazine.

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