Viettel and SCIC to divest from Vinaconex

Viettel and SCIC will divest from Vinaconex next month

On November 22, two auctions divesting of Vietnam Construction and Import-Export JSC (Vinaconex) will take place at the Hanoi Stock Exchange (HNX).

Accordingly, Viettel will auction a total of 94,010,175 shares, equivalent to the capital contribution of over VND940 billion ($40.87 million), capturing 21.28 per cent of Vinaconex charter capital. The initial price for this batch is more than VND2 trillion ($86.96 million), equalling VND21,300 apiece ($1).

State Capital Investment Corporation (SCIC) will also auction a batch of 254,091,153 shares, equivalent to a capital contribution of over VND2.549 trillion ($110.83 million), making up 57.71 per cent of Vinaconex’s charter capital. The offered price for this batch is nearly VND5.43 trillion ($236.1 million), equalling VND21,300 apiece ($1).

Vinaconex was developed from Oversea Services and Construction Company, which was established in 1988. In 2006, it was renamed to Vietnam Construction and Import-Export JSC, which was the first state-owned corporation to implement the government’s pilot equitisation programme. Its share (code: VCG) has been listed on the HNX in 2008.

Currently, Vinaconex has 25 subsidiaries and 8 affiliates. After three rounds of increasing capital, its charter capital has been raised to VND4.417 trillion ($192 million) from nearly VND1.5 trillion ($65.22 million) in 2006, contributed by the three biggest shareholders SCIC (57.71 per cent), Viettel (21.28 per cent), and PYN Elite Fund (7.54 per cent).

Vinaconex’s core area of business is construction, which contributes 60 per cent of the corporation’s revenue. Additionally, the company is also active in property development, industrial production, and construction materials, design consultancy, import-export, and labour export, as well as education and training.

Vinaconex is developing projects like 2B Vinata Tower, the complex of trade centres, offices, and apartments at 25 Nguyen Huy Tuong Street, Thanh Xuan district, the re-construction of the buildings at 93 and 97-99 Lang Ha Street, as well as Hoa Lac Hi-Tech Park.

The corporation also manages and uses a total of 98,901sq.m of allocated land across the four cities and provinces of Hanoi, Danang, Thanh Hoa, and Vinh Phuc, as well as around 1.192 million sq.m of leased land in Hanoi and Ho Chi Minh City.

In 2017, Vinaconex reported a revenue of VND10.89 trillion ($473.48 million) and an after-tax profit of VND1.63 trillion ($70.87 million), signifying on-year increases of 127.5 and more than 228.6 per cent, respectively.

This year, the firm set the target to reach VND4.49 trillion ($195.2 million) in revenue and VND491 billion ($21.4 million) in after-tax profit.