|Ha Noi Securities Trade Center|
According to VAFI, EVN’s large stake will slow down the restructuring process and the plants still depend on the bureaucratic decisions from EVN. It also prevents outside investors from becoming strategic partners in those plants.
Currently, EVN owns 75% total shares of Thac Ba Hydro Power Joint-stock Company and Pha Lai Thermal Power Joint-stock Company; 60% of Vinh Son - Song Hinh Hydro Power Joint-stock Company (VSH), which has listed on Ha Noi Securities Trade Center (HASTC) since July 14, 2005.
With this rate, EVN still controls all the management decisions. Outside investors cannot play an important role even though they have invested significant amount of capital into the plants. It reduced the value of these electricity stocks as investors took into account the management risk.
If EVN’s ownership were cut down to 51%, the shares of those plants would be more attractive to investors and the prices would rise significantly. As estimated, EVN could receive about VND1,500 billion with the stocks selling if they reduce its shares in three equitized power plants quoted above.