VNPT dials in divestiture plan

August 24, 2012 | 14:18
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It is proven tough for leading telco group VNPT to materialise capital divestiture plan.

In July 2012, FPT Securities was chosen by VNPT to act as a consultant to the state group’s investment restructuring plan.
Accordingly, the leading telco envisages handing over some investment ventures and divesting from some other firms in which it held stake.  

However, there is no information on the group’s stake transfer or capital divestiture at this time, highlighting to trouble VNPT has in stepping away from firms which are mostly in dire straits.

VNPT reportedly put its claws into 85 shareholding and limited liability firms, not all of them reported buoyant business figures, especially in 2011 and the first six months of 2012, such as Sacom Investment and Development Corporation in which VNPT holds 31.02 per cent stake.

In 2011, Sacom just reached 63 per cent of its revenue target while its profit contracted VND178 billion ($8.4 million).

The company’s stock was then put under alert by Ho Chi Minh Stock Exchange from March 21, 2012 on the back of poor performance.

Another case is the Telecommunication Technical Service (TST) in which the group grabs 32.8 per cent chartered capital.
Accordingly, in 2011 the company profit contracted VND5.6 billion ($266,000) and revenue came to VND33 billion ($1.5 million). Corresponding figures in 2012’s first half were minus VND9 billion ($428,000) and VND13 billion ($619,000).

The company argued its contracted profits largely stemmed from contracted profits of its affiliate Vietnam Optic Fiber (Vina OFC).
It is worth to note that both TST and VNPT are Vina OFC’s main shareholders in which VNPT retains 50 and TST 25 per cent stakes.

The next firm having VNPT stake which runs at losses is Saigon Postel (SPT). In 2012, the group held 14.5 per cent stake in SPT, this figure now drops to 8.53 per cent as the latter had scaled up its chartered capital.

SPT’s financial report shows the company’s profits had contracted in three straight years 2008-2010 and by mid 2011 the firm incurred VND186 billion ($8.8 million) losses.

Auditing firm PwC general director Dinh Thi Quynh Van assumed handling divestiture plans would not be smooth even to big economic groups in the face of a hostile business climate.

VNPT deputy director Phan Hoang Duc said: “VNPT’s capital divestiture from member companies closely relates to the group’s restructuring process, hence it would take at least five years to finalise the move. Besides, its success depends on market conditions.”

State corporations and groups were earlier demanded to complete capital divestiture plans before the end of 2015.

By Duc Huy

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