Jardine Cycle & Carriage Limited Announces Strategic Partial Divestment of Vinamilk Shares

Key Highlights

• Partial Divestment: JC&C, through its wholly-owned subsidiary Platinum Victory Pte. Ltd. (PVPL), has sold 73,210,000 shares in Vietnam Dairy Products Joint Stock Company (Vinamilk), representing 3.5% of Vinamilk’s total shareholding.
• Transaction Value: The aggregate consideration for the divestment amounts to VND4,927 billion (approximately USD188 million), with each share sold at VND67,300.
• Remaining Stake: Following the divestment, PVPL’s shareholding in Vinamilk decreases from 6.0% to 2.5%.
• Purpose of Sale: The proceeds from the sale will be used for JC&C’s internal funding requirements as part of its ongoing portfolio optimization strategy.
• Market Context: The sale price per share (VND67,300) represents a discount to Vinamilk’s closing market price of VND72,300 on the day prior to the transaction.

Detailed Overview

On 26th February 2026, Jardine Cycle & Carriage Limited (JC&C) announced the partial divestment of its strategic investment in Vinamilk, Vietnam’s largest dairy company listed on the Ho Chi Minh Stock Exchange (HOSE). The divestment was executed via the sale of 73,210,000 shares by PVPL, which now reduces JC&C’s effective stake in Vinamilk to 2.5%.

The transaction was arranged with Jefferies acting as Sole Global Coordinator and Bookrunner, and was carried out through HOSE’s trading system. The total consideration received was VND4,927 billion (approx. USD188 million), based on a negotiated price of VND67,300 per share. This price is notably below the market closing price of VND72,300 per share as at 25th February 2026, indicating a negotiated discount in the transaction.

JC&C stated that this divestment aligns with its strategic objective to focus its investment portfolio and enhance overall shareholder value. The cash generated from the sale will support the Group’s internal funding requirements, providing increased financial flexibility for future initiatives or investments.

Implications for Shareholders

• Potential Share Price Impact: The sale at a significant discount to market price may raise questions regarding the valuation outlook for Vinamilk or JC&C’s overall investment strategy. Investors may interpret the move as a signal of changing confidence in Vinamilk or a shift in capital allocation priorities.
• Limited Financial Impact: Importantly, JC&C emphasized that had this transaction been completed during FY2024, it would not have had a material impact on the Group’s earnings per share, underlying earnings per share, or net tangible assets per share. This suggests the divestment is not expected to materially affect the Group’s financial ratios or immediate earnings outlook.
• No Related Party Interests: None of JC&C’s directors or controlling shareholders has any direct or indirect interest in this transaction, other than through their shareholding interests in JC&C itself.

Conclusion

This strategic divestment reflects JC&C’s ongoing efforts to optimize its portfolio and deploy capital towards its most value-accretive opportunities. Investors should closely monitor any further changes in portfolio composition and consider the implications of the discounted sale price on market sentiment towards JC&C’s investments. The move, while not immediately material to financial metrics, is a noteworthy step in the Group’s capital allocation strategy and may influence investor perceptions in the near term.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with their financial advisors before making investment decisions. The author is not responsible for any losses incurred from reliance on this information.

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