Government’s SCIC continues flight from cement firms

December 30, 2014 | 08:00

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The State Capital Investment Corporation (SCIC) is selling its entire stake in Sai Son Cement Joint Stock Company (SCJ).

The SCIC has announced that it will sell all of its 16.44 per cent holding in the company, or 3.2 million shares, on December 31 for an initial price of VND14,300 (70 US cents) per share, 54 per cent higher than the market price of VND9.300 (43 US cents). The purpose of the sale, according to the SCIC, is to divest from sectors and firms in which the state does not need to hold shares.

The SCIC is currently the biggest shareholder in SCJ, followed by Nguyen Van Bong, SCJ’s general director, with 15.37 per cent. The remaining 68 per cent is held by other shareholders. SCJ has a chartered capital of VND195.1 billion ($9.16 million).

As of June 30, 2014 SCJ’s assets were valued at VND526 billion ($24.7 million), while its total debts amounted to 50.5 per cent of its total assets.

In 2012, due to high financial costs, SCJ reported losses of VND11.9 billion ($560,000). However, in 2013 SCJ achieved profitability again. In the first three quarters of this year the company reported net profit of VND15.4 billion ($723,000).

On September 23 the SCIC finished selling its entire 40 per cent stake in Yen Bai Cement and Minerals Joint Stock Company (YBC), a small cement producer that has been reporting losses for three years and was resultantly delisted.

By By The Hai

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