The Electricity of Vietnam (EVN) will auction its entire stake of nearly 29 percent, or about 11.48 million shares, in An Binh Securities Company on June 4.
|EVN workers. The EVN will auction its entire stake of 29 percent, or 11.48 million shares, in An Binh Securities Company on June 4. (Photo: VNA)|
The firms said in their online statements that the auction is open to both domestic and foreign investors. The shares have a combined value of some VND 114.87 billion (US$ 5.47 million) and will be bid at an initial price of VND 10,000 (48 cents) per share, equivalent to their face value.
EVN management board Chairman Hoang Quoc Vuong said the An Binh stake accounted for 0.08 percent of the EVN's charter capital of VND 143.40 trillion (US$ 6.83 billion). The auction is part of the roadmap of the electricity company to divest from non-core businesses.
In 2014, EVN completed divestments from Land Sai Gon and Land Central property companies, and partially withdrew from EVN Finance. It fetched EVN VND 691 billion (US$ 32.90 million) after it exited these businesses, finishing about 40.8 percent of all capital it was supposed to divest following its reorganization plans.
EVN leaders said the company was determined to totally withdraw from the banking, finance and insurance areas this year – the final year for it to accomplish the 2012-15 restructuring scheme, as required by the government.
This year, it would complete divestments from An Binh Bank and Global Insurance Company, as well as EVN Finance. It would also reduce its stakes in several mechanical firms, besides submitting a plan to privatise the Power Generation Corporation 3 (Genco 3) to the Ministry of Industry and Trade for consideration.
Prime Minister Nguyen Tan Dung asked EVN to become a strong economic group by 2015, and tasked it to accelerate investment in the national grid and regulate the trade of electricity to assure adequate power supply for the nation by 2030.
"Although more and more private investors have taken part in the electricity sector, EVN still plays a decisive role in supplying power for the economy. Thus, its demand for capital will still be great in the coming years," said a joint EVN and An Binh report.
EVN is reportedly building a project to increase labour productivity and enhance production and business efficiency for the next five years, and this scheme is expected to be presented to the prime minister for approval by the end of this year.