Foreign energy firms express interest in BSR
Foreign energy firms express interest in BSR
Binh Son Refining and Petrochemical Co Ltd (BSR) is willing to sell up to 49 per cent of its capital to a foreign strategic investor during its equitisation, which is reportedly appealing to major global energy companies.
Binh Son Refining and Petrochemical is the wholly-owned subsidiary of Vietnam National Oil and Gas Group (PVN) and the operator of the $3-billion Dung Quat Oil Refinery, the first oil refinery in Viet Nam.
The petrochemical company plans for its initial public offering by the end of 2017, one year late compared with its earlier target of the end of 2016, due to complexity in evaluating the company.
BSR general director Tran Ngoc Nguyen said the firm was inviting advisors to decide the corporate value.
"The schedule for equitisation is aligning with the Government's nod for Binh Son's IPO plan," Nguyen said, adding that the most important work now is to seek strategic investors.
He said the company was working with some top global energy firms that had expressed interest in Binh Son's equitisation, such as Russia's Rosneft and Gazprom Neft, Thailand's PTT and one US firm.
"A strategic investor can buy up to 49 per cent stake in the company. If they want to buy more, we will have to report to the Government," Nguyen said.
He believes the Government's recent permission for Binh Son's self-regulated price mechanism would help attract investors.
Early this month, the Government allowed Binh Son to make its own price mechanism for Dung Quat's petrol products after the company repeatedly called for support to improve competitiveness.
Dung Quat's current petrol is often more expensive than imported products due to higher import taxes imposed on their products compared with enterprises which benefit from import tariff incentives under free trade agreements Viet Nam has signed.
"Self-regulated price mechanism will increase the competitiveness of company products and then make it appealing to investors," Nguyen said.
