Vinalines’ $60.8 million divestment from Haiphong port

Vinalines is expected to sell its shares divested from Hai Phong Port to the Viet Nam - Oman Investment Joint Stock Company. - Photo antt.vn

The sale of the 79 million shares is expected to reduce Vinalines’ ownership in the port from 94.68 to 51 per cent.

Vinalines decided to sell the port to VOI as an alternative to converting its VND5 trillion ($235 million) debt to Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) into equity in Haiphong port.

Vinalines intends to use the acquired VND1.3 trillion ($60.8 million) to restructure its debts which cumulated at VND17 trillion ($748.5 million) as of the end of 2014. The total is reduced via divesting and restructuring.

As part of this initiative, on December 8, 2014, Vinalines sold 20 million shares of Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank) for VND315 billion ($14.7 million).

Previously, the group planned the dissolution of two subsidiaries, letting two others go bankrupt and selling its shares in 37 other companies. Within these arrangements Vinalines would have focused its restructuring efforts on three main sectors, namely sea transport, port operation and shipping services by 2015.

Vinalines is a leading sea transportation group in Vietnam. The group’s services include ship management, dry cargo vessels and tankers chartering and operations, international freight forwarding services for sea cargo, logistics, shipping agency and brokerage services, marine supplies and materials services, ship sale and purchase, crewmember lending and multi modal transport services.

Haiphong Port has been developed into the biggest port in the northern region, accounting for 40 per cent of cargo volumes carried through Haiphong’s waterway network. In 2013, the company reported consolidated net revenues of VND1.939 billion ($92.3 million) and a net profit of VND288 billion ($13.7 million), respective 0.7 per cent and 73 per cent annual increases.

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