HANOI-- Shares in Vinamilk, Vietnam’s largest listed company, hit an all-time high on Tuesday after local media said a drinks-maker controlled by Thailand’s second-richest man plans to buy out the state's 45% stake.

Vinamilk rose 5% to a record intraday high of 123,000 dong ($5.52) following a report in The Saigon Times , which cited an unidentified chief executive of a foreign fund represented on Vinamilk's board saying Fraser and Neave Ltd was planning the US$4-billion deal.

F&N is 88% controlled by tycoon Charoen Sirivadhanabhakdi through his Thai Charoen Corp Group and flagship Thai Beverages Plc.

The government has instructed its State Capital Investment Corp to sell out of Vinamilk, a company 11.03% owned by F&N subsidiary F&N Dairy Investment.

"F&N has not submitted any offer letter to Vinamilk or the SCIC with regard to any possible offer to purchase SCIC's stake," F&N said in a statement.

Representatives of Vinamilk, or Vietnam Dairy Products JSC, were not available for comment.

Vinamilk has a market value of $6.3 billion, so a $4 billion purchase would surpass SCIC's $2.8 billion stake.

"It's not surprising," said analyst Tran Minh Hoang at Vietcombank Securities. "Vinamilk is one of the top companies in Vietnam with good business results and promising prospects.

"An F&N offer would be the latest move by Mr Charoen to expand in Vietnam and tap strong economic and retail growth in a country of 90 million people. Subsidiaries of his TCC already have shares in a top Hanoi hotel and own more than 100 Vietnamese convenience stores.

ThaiBev is also interested in Vietnamese state brewer Sabeco, its CEO said in May.

Vichate Tantiwanich, ThaiBev's senior vice president, said no move had been made for a larger share of Vinamilk.

"We already have a stake through F&N," he told Reuters.

Increased interest in Vinamilk has long been anticipated, buoyed by new laws allowing 100% foreign shareholdings in many equities. But would-be investors are awaiting clarity on which firms can be wholly foreign owned.

SCIC has been instructed to divest from Vinamilk and nine other firms, but at a time of its own choosing.

Dang Quyet Tien, vice head of the Finance Ministry's department for enterprises, said foreign ownership in Vinamilk would not be restricted.

"There's no limit right now," he told Reuters. "But it's up to SCIC how it wants to sell its stake."Vinamilk closed up 2.56% at 120,000 dong at the midday break Tuesday.  Source: Bangkok Post