The move is to raise its exposure to the plant-based beverage industry in mainland China and Hong Kong
YEO Hiap Seng has further acquired 21.1 million shares in Vitasoy for HK$133.8 million (S$22.5 million), bringing its total shareholding in the Hong Kong-listed beverage manufacturer to 4 per cent.
On Thursday (Oct 17), the beverage manufacturer said it bought the shares at HK$6.34 apiece.
This is below the volume-weighted average price (VWAP) of about HK$6.46 per Vitasoy share for all trades done on Oct 16. It places the transaction’s value at HK$250 million.
Based on pro forma estimates, Yeo Hiap Seng’s increased stake in Vitasoy would not have any effect on its net tangible assets per share of S$0.89 for the financial year ended December 2023, though earnings per share would stand at a lower S$0.0094 as opposed to S$0.011.
Yeo Hiap Seng said its latest acquisition was in line with its strategy announced on Oct 9, when the group announced its purchase of some 17.6 million Vitasoy shares for HKS$103.6 million.
At the time, this represented an average price of HK$5.8849 per share, below Vitasoy’s VWAP of HK$5.995 per share for all trades done on the prior day.
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In its Oct 9 filing, Yeo Hiap Seng said its move was in line with the group’s strategy of “investing in industry-leading companies in Asia”.
The earlier transaction had brought Yeo Hiap Seng’s total shareholding in Vitasoy to 2.04 per cent as at Oct 9, after factoring in its pre-existing shareholding of 0.4 per cent.
The deal was viewed to increase Yeo Hiap Seng’s exposure to the plant-based beverage industry in mainland China and Hong Kong, where Vitasoy has operations in addition to Australia, Singapore and the Philippines.
Shares of Yeo Hiap Seng ended Wednesday flat at S$0.565.
