EVN divests from non-core businesses
EVN divests from non-core businesses
The Electricity of Viet Nam (EVN) will auction 62.5 million shares of EVN Finance Joint Stock Company, or 25 per cent of its stakes, on the Ha Noi Stock Exchange next month, the exchange announced on the website.
The opening price is set at VND10,100 (US48 cents) a share. EVN is expected to collect more than VND631 billion ($30 million) from the sale, which will be held on December 5.
EVN Finance is the second largest finance company in Viet Nam. It has charter capital of VND2.5 trillion ($118.5 million). Ending June, its total assets reached were nearly VND17 trillion ($805.7 million) and its equity capital was VND2.75 trillion ($130.3 million).
It reported an after-tax profit of VND30.7 billion ($1.5 million) in the first eight months of this year.
EVN is the biggest stakeholder with a holding of 100 million shares, equivalent to 40 per cent of EVN Finance's total capital. Its holdings are expected to reduce to 15 per cent after the auction.
In addition to the finance sector, EVN has invested in An Binh Bank, where it has a holding of nearly 77 million shares and in An Binh Securities Co, where it has a 11.5 million shares stake.
A Government's decree in August said EVN was not permitted to invest in non-core businesses, including banking, finance, securities, insurance, investment funds and the real estate.
Early this year, EVN deputy general director Duong Quang Thanh said the company would divest capital from seven subsidiaries by 2015, including EVN Finance, An Binh Bank, An Binh Securities Co, Global Insurance Co, Saigon Vina Land Co, the Central Power Real Estate Co and Viet Nam Investment and Power Construction Co.
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