Vinaconex resumes divestment from Viwasupco

October 27, 2017 | 13:47

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Vinaconex JSC (Vinaconex) has officially announced the plan to divest its entire 25.5-million shareholding in Vinaconex Water Supply JSC (Viwasupco) through an auction, as part of restructuring its operations.

Vinaconex starts restructuring with Viwasupco, selling its 51 per cent holding

At present, Vinaconex is the largest shareholder in Viwasupco with a 51 per cent holding, followed by Ecology Investment and Development JSC with 43.6 per cent. Vinaconex expects to earn VND980 billion ($43.2 million) from the sale.

According to Vinaconex’s official notice, the 25.5 million shares will be offered at the initial price of VND39,904 ($1.75) apiece.

Interested investors will need to submit their application to participate in the auction between October 25 and November 3.

The auction is expected to be organised on November 22-24.

Previously, in October 2016, Vinaconex planned to put its entire holding in Viwasupco on sale. However, the divestment was not implemented and no specific information about the deal had been published to date.

On November 11, 2010, Vinaconex completed the transfer of 21.8 million Viwasupco shares to Acuatico. After the transfer, Vinaconex retained 25.5 million shares, equalling 51 per cent of Viwasupco’s total chartered capital.

Along with the divestment from Viwasupco, Vinaconex plans to divest from a series of subsidiaries, including its 30.36 per cent holding in Vinaconex 11, 29 per cent of the equity capital in International Joint Venture Vinaconex-Taisei Co., Ltd., 35.39 per cent in Vinaconex Glass Fiber Reinforced Polyester Pipe JSC, and 51.4 per cent in Vimeco JSC.

Vinaconex specialises in property development, design consultancy, industrial production, financial investment, education and training, and commercial activities, among others. It currently manages nine subsidiaries and affiliates.

Regarding Viwasupco, in November 2016, the company’s 50 million shares were officially listed on the Unlisted Public Company Market (UpCoM), with the reference price of VND40,000 ($1.76). At present, its shares are valued at VND38,600 ($1.7). Viwasupco currently has a chartered capital of VND500 billion ($22.03 million).

Viwasupco is the Vinaconex subsidiary posting the most effective business results. However, it became infamous after the Song Da water pipe broke 21 times in seven years, impacting households in Hanoi.