Vinaconex to make second attempt at divetment

Vinaconex is considering two scripts for divestment this year

At the annual general shareholders’meeting, Nguyen Duc Chi, chairman of the Board of Directors of Vinaconex, released two scripts for divestment this year.

Accordingly, Vinaconex will put either the entire state-owned stake (57.79 per cent) or the unmarketable stake left from the first auction on sale this year. State Capital Investment Corporation (SCIC), which represents the state-owned stake in Vinaconex, will select the final divestment plan.

Earlier on December 8, SCIC auctioned off 96.24 million shares in Vinaconex, equal to a 21.79 per cent stake on the HNX with the minimum bidding price of VND25,600 ($1.12) apiece.

At this price, the state investment company expected at least VND2.46 trillion ($108 million) in proceeds while retaining a 36-per-cent stake in the company.

However, in reality, only 5.35 million out of the 96.24 million on offer were sold, leaving 94 per cent of the shares unmarketable.

Only three investors, including one organisation and two individuals joined the auction.

After the auction, SCIC acquired VND137 billion ($6.03 million) from selling the stakes at the price of VND25,600 ($1.12, the initial offering price), decreasing its holdings in Vinaconex to 52.2 from 57.79 per cent.

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.

In 2017, Vinaconex reported a revenue of VND10.89 trillion ($478.2 million) and an after-tax profit of VND1.63 trillion ($71.5 million), signifying on-year increases of 127.5 and more than 228.6 per cent, respectively.

The divestment from its subsidiary Viwasupco resulted in soaring revenue and after-tax profit figures for Vinaconex.

This year, the firm set the target to reach VND4.49 trillion ($197.2 million) in revenue and VND491 billion ($21.6 million) in after-tax profit.