The State Capital Investment Corporation (SCIC) will offload stakes in 134 enterprises in 2018-2020 while national flag carrier Vietnam Airlines will move its listing from Unlisted Public Company Market (UPCoM) to Ho Chi Minh City Stock Exchange (HoSE).
SCIC will offload stakes in 134 public enterprises in 2018-2020
The State Capital Investment Corporation (SCIC), Vietnam’s sovereign fund, said it would step up state capital divestment to cover a total of 134 enterprises during the 2018-2020 period. It will, however, continue to hold its interest in two enterprises – technology major FPT Telecom and its subsidiary SCIC Investment Company, local media reported.
According to a detailed divestment plan, the sovereign fund aims to offload capital in 121 businesses this year. It plans to offload its stakes at Tien Phong Plastic Joint Stock Company, FPT Joint Stock Company and Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) again this year after its failed attempt in 2017.
The companies in the thermal power sector will also be part of SCIC’s divestment plan. These include Quang Ninh Thermo-power Joint Stock Company and Hai Phong Thermo-power Joint Stock Company. Other major names in the divestment list include Domesco Medical Import-Export JSC, Bao Viet Group, Thang Long Corporation and Vietnam Vegetable Oil Industry Corporation.
Vietnam Dairy Product JSC (Vinamilk) and Vietnam Military JSC (MB Bank) and Hau Giang Pharmaceutical JSC, however, are not among companies that the state is looking to divest this year.
SCIC earlier successfully sold 29.52 per cent stake in Binh Minh plastic JSC to Thailand’s Nawaplastic Industries to earn VND2.33 trillion ($103 million). Nawaplastic Industries increased its shares to 51 per cent of total capital at the plastic firm.
Vietnam Airlines’ shares to be listed on HoSE
National flag carrier Vietnam Airlines (HVN)’s shareholders have approved a plan to move its shares from UPCoM to Ho Chi Minh City Stock Exchange (HoSE).
At the annual shareholders’ meeting May 10, the airline announced that the plan to move from UPCoM to HoSE will be conducted after the completion of the sale of 191 million shares to current shareholders.
The state-owned airline earlier announced plan to issue more than 191 million shares at VND10,000 ($0.4) apiece to current shareholders with the aim of increasing its charter capital.
“The State currently owns 86.2 per cent stake of Vietnam Airlines and we are carrying out procedures to offer for sale 57.9 million shares to existing shareholders. The national carrier will also list its shares on the benchmark stock exchange in Ho Chi Minh City (HoSE) in the second quarter of this year,” CEO of Vietnam Airlines Duong Tri Thanh told local media.
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