The Vietnamese government is targeting to raise VND80 billion ($3.52 million) by divesting the tourism service arm of state-owned energy giant PetroVietnam.
The divestment exercise, scheduled for May 24, will involve the auction of 7.1 million shares, equivalent to 11.9 per cent stake of the National Oil Services JSC Vietnam Limited (OSCVN), a subsidiary of PetroVietnam, at a starting price of VND10,800 ($0.4) apiece.
If the auction is successful, the state hopes to earn nearly VND80 billion ($3.52 million) and will no longer be a shareholder of OSCVN.
OSCVN, which has a charter capital of VND600 billion ($26.4 million), conducted its initial public offering (IPO) in 2015. It is now also owned by three other major shareholders, of which Vietnamese golf services firm BRG Group holds 67.85 per cent stake, Hoan Kiem Trading and Tourism Co 9.5 per cent stake and Thanh Cong Investment Construction and Trading JSC 6.7 per cent.
Founded in 1997, OSCVN engages in tourism, oil services, and real estate businesses in Vietnam. It operates approximately 10 two-four star hotels with various facilities. The PetroVietnam’s travel arm currently manages a number of gold plots in Hanoi and Ho Chi Minh City and runs two travel agencies, OSC Vietnam Travel and OSC First Holidays.
From early this year, PetroVietnam has completed the equitization of Binh Son Refining and Petrochemical Co Ltd (BSR), PetroVietnam Power Corporation (PV Power), and PetroVietnam Oil Corporation (PV Oil).
It will prepare equitization plan of PetroVietnam Exploration Production Corporation after 2020 and merge PetroVietnam University (PVU) and Vietnam Petroleum Institute (VPI) into Vietnam Petroleum Academy in 2020.
Between 2021 and 2025, the group will push forward with equitization and divestment. It will maintain more than 50 per cent of stake in the three following firms – PetroVietnam Exploration Production Corporation (PVEP), Vietsovpetro and PetroVietnam Gas JSC (PV Gas) while reduce its stakes to less than 50 per cent in other 12 subsidiaries.
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