Vinalines’ equitisation plan receives go-ahead

June 23, 2018 | 12:24

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After years of waiting, the equitisation plan of state-owned shipping giant Vinalines was approved on June 20 by the prime minister, paving the way for the firm to attract strategic investors.

vinalines equitisation plan receives go ahead

Vinalines' business results have been improving in the past two years, appreciating it in investors' eyes

According to Decision No.751/QD-TTg, Vinalines will have a charter capital of VND14.046 trillion ($624.26 million) after it is equitised. The state will hold 65 per cent of the firm's charter capital, while strategic investors can acquire 14.8 per cent.

As planned, Vinalines will launch its initial public offering (IPO) in September 2018.

Vinalines will be renamed to Vietnam Maritime Corporation (VIMC) after the equitisation.

The move will pave the way for interested investors. With ports remaining its most profitable business, Vinalines, which has stakes in 14 port companies and operates over 13,000 metres of piers with a total capacity of 75 million tonnes a year, is attracting the attention of international groups, including those from Japan, the US, and South Korea.

Recently, SK Group, one of the largest conglomerates in South Korea, expressed interest in becoming a strategic investor of Vinalines.

Since 2015, Vinalines’ equitisation plan has been submitted to the government numerous times for consideration. Thus, this approval is good news for the firm and investors alike.

In the recent two years, Vinalines' performance has improved. In 2017, the goods shipped via its ports reached nearly 90 million tonnes, up 13 per cent from the plan, while its revenue rose by nearly 15 per cent to VND16 trillion ($711.11 million). The parent company's consolidated profit hit VND515 billion ($22.88 million), marking a record in recent years.

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By Bich Thuy

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