Singapore’s Jardine Cycle & Carriage (JC&C) has revealed that its subsidiary Platinum Victory has acquired a 5.53% stake in Vietnam’s joint stock company Vinamilk for a cash consideration of $616m.

The deal was approved by the JC&C’s board of directors.

The acquisition is in line with JC&C’s strategy to invest in the growing companies and further strengthen its presence in the Southeast Asian markets.

As per the deal, JC&C’s subsidiary has acquired 80,285,671 shares in Vinamilk for a price of VND10,000 ($0.44) each by participating in an auction organised by the State Capital Investment Commission (SCIC).

“JC&C’s subsidiary has acquired 80,285,671 shares in Vinamilk for a price of VND10,000 ($0.44) each.”

The SCIC is reported to be one of the largest stakeholders in Vinamilk.

JC&C will be using the group’s internal resources and external borrowings to fund this transaction.

Established in 1976 and headquartered in Ho Chi Minh City, Vinamilk is said to be one of the leading dairy producers in the country with a market share of approximately 58%.

Vinamilk currently operates 13 dairy factories, owns ten cow farms, and has a well-established distribution network across Vietnam with more than 240,000 retailers as exclusive distributors.

In addition, the joint stock company distributes its dairy products to more than 43 countries and territories outside Vietnam.