Sai Gon Port to sell shares to banks

A view of Sai Gon Port in HCM City. Vingroup will not become the port's strategic investor. Photo bizlive

The volume of shares is equivalent to 16.5 per cent of the firm's charter capital of VND2.16 trillion ($9.6 billion). The bid will be held at Maritime Securities in HCM City, and the initial price will be VND11,514 (US$0.5) per share.

Sai Gon Port made the announcement in an online notice following approval by its parent company, Viet Nam National Shipping Lines, or Vinalines.

The offer of the 16.5 per cent stake means that the banks will have to compete to acquire a desired stake, as each of them had registered earlier this year to purchase 11 per cent of the port company.

The State Bank of Viet Nam has given VietinBank a nod to swap a debt that Sai Gon Port owes it, reportedly about VND2.3 trillion ($102.22 million), for a stake in the port company if share transactions are successful.

The latest announcement also means that property giant Vingroup will not take part in the auction, although this firm has already signed up to acquire up to 80 per cent of Sai Gon Port's equity.

Vingroup has confirmed with news website VnExpress that it will not participate in the bid without further explanations.

The State currently owns some 64 per cent of the Sai Gon Port's equity, after the company sold 35.7 million shares during an initial public offering (IPO) on June 30. The firm took in VND411 billion ($18.27 million) from the IPO, according to the HCM City Stock Exchange.

This year, the company plans to report a turnover of VND935 billion ($41.56 million) and a net profit of VND31 billion ($1.38 million). Last year, it posted revenues of VND1.07 trillion ($47.56 million) and a pre-tax profit of VND79 billion ($3.51 million).

The company manages four ports in HCM City, with 20 docks and 463,448 square metres of warehouses and shipyards. It transports 10 million tonnes of goods each year.