Vinacomin divestment sees avid foreign interest

July 27, 2017 | 15:08

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Vietnam National Coal and Mineral Industries Group (Vinacomin) plans to decrease its holding in Vinacomin-Power Holding Corporation to 65 per cent from the current 99.68 per cent.

Vinacomin-Power Holding Corporation subsidiary Cao Ngan thermal power plant

According to Dang Thanh Hai, general director of Vinacomin, investment funds and both foreign and domestic enterprises operating in the power sector may join the purchase. At present, numerous foreign investors from Japan, Thailand, China, and Singapore have expressed interest in Vinacomin-Power Holding Corporation’s shares.

Vinacomin and Vinacomin-Power Holding Corporation will organise meetings with investors in the third quarter of 2017 and expect to conduct the transaction in the fourth quarter.

Vinacomin-Power Holding Corporation currently has the chartered capital of VND6.8 trillion ($298.98 million), equaling 680 million shares with a price of VND10,000 apiece. Thus, the divestment would involve 235.81 million shares worth VND2.36 trillion ($103.75 million).

Operating under the joint stock company form since January 15, 2016, Vinacomin-Power Holding Corporation owns seven power plants with a total capacity of 1,730MW. Besides, Vinacomin-Power Holding Corporation contributes capital to three other power plants, with holdings from 5-10 per cent.

Specifically, the compnay has developed Na Duong 2 thermal power plant in the northern province of Lang Son. Once completed in 2018, the plant, which has a total investment capital sum of $192 million, will have a capacity of 110MW, generating 650 million kWh of electricity each year and helping ensure a stable power supply for Lang Son and other northern border provinces, as well as national energy security.

In 2016, Vinacomin-Power Holding Corporation earned a pre-tax profit of VND244 billion ($10.7 million). The figure of the first half of this year was VND261 billion ($11.5 million).

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