Vietnam's Vinatex says may sell 24 pct stake to 2 property firms

Sep 16th at 08:07

16-09-2014 08:07:48+07:00

Vietnam's top textiles and garment maker Vinatex has been given the go-ahead to sell a combined 24 percent stake to two domestic property firms, among them Vingroup, ahead of the state-run firm's IPO next week.

Vinatex will sell 10 percent to Vingroup, the country's third-biggest listed firm by market value, and 14 percent to the unlisted Vietnam Investment Development Group, Vinatex said in a statement on its website (www.vinatex.com).

It is widely seen as one of the most attractive among a slew of more than 400 planned initial public offerings by firms the government is selling shares in as part of moves to clean up a largely inefficient state sector.

Vinatex dominates a local textiles sector that is set to gain strongly from a raft of trade pacts Vietnam is negotiating, including the 12-nation Trans-Pacific Partnership (TPP), which would see it replace China as the biggest garment supplier to the United States market.

It seeks to raise at least US$63.4 million at the Sept. 22 IPO, offering 122 million shares, or 24.4 percent, to the public at a starting price of 11,000 dong ($0.52) each. The state will retain 51 percent and the remaining 0.6 percent will be sold to employees.

It did not disclose the price of its share sales to the two potential strategic investors.

Garments and textiles are Vietnam's second-biggest cash earner after cellphones, netting $18 billion in 2013, with the figure projected to rise to $24 billion this year.

Vingroup, which has interests in property, retail, hotels, entertainment and private schools and hospitals, said in an email to Reuters it was too soon to comment on any possible purchase of a Vinatex stake. ($1=21,170 dong.

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