Equitisation funds to be used correctly
Equitisation funds to be used correctly
Proceeds from the sale of State capital at Sai Gon Beer-Alcohol-Beverage Corporation (Sabeco) and other State-owned enterprises will be used for the right purposes as approved by the National Assembly.
This statement was made by the Ministry of Finance (MoF) at a press conference on the equitisation of State-owned enterprises (SOEs) on Monday.
The Ministry of Industry and Trade offloaded over 343.6 million shares, or a 53.6-per-cent stake in Sabeco, for almost VND110 trillion ($4.8 billion) on December 18. However, concern remained over what the Government will do with these proceeds.
Dang Quyet Tien, director of the MoF’s Corporate Finance, said all proceeds from the sale of State capital at Sabeco and other SOEs will be transferred to an account held by the ministry at the State Treasury.
This money will be audited by the State Audit to “ensure its proper use”, Tien said.
According to the National Assembly’s instructions, proceeds from State capital divestments will be spent on development investment and social security (such as education and health).
During the period 2016-20, the National Assembly has planned to collect VND250 trillion from divestments. The targets for 2017 and 2018 are VND60 trillion and VND65 trillion, respectively.
The Government has earned about VND120 trillion from the sale of capital at Sabeco and Vinamilk this year. On December 28, investors who purchased Sabeco shares will complete the payment.
In 2018, the State’s divestment portfolio includes big names such as Ha Noi Beer Alcohol and Beverage Joint Stock Corporation (Habeco), Vinamilk and other companies under the management of the State Capital Investment Corporation (SCIC) such as PV Oil and Binh Son Refining and Petrochemical Co Ltd.
The State’s remaining 36 per cent stake at Sabeco will also be put on sale at the proper time, Tien said.
2017 results
Ten State-owned enterprises have made divestures from non-core business lines in 2017. Divestments from five sensitive industries (banking-finance, insurance, securities, real estate and investment funds) brought in VND292 billion, a 60 per cent premium over the book value of VND182 billion.
In remaining sectors, the State has collected over VND2.95 trillion from share sales compared to a total book value of VND1.8 trillion.
SCIC, the Government’s investment arm, has sold capital in 40 companies this year for nearly VND21.64 trillion, a 11.4-fold premium over the total book value of VND1.9 trillion, including VND11.3 trillion from Vinamilk’s share sale in 2016 and nearly VND9 trillion for another 3.33 per cent of Vinamilk’s capital on November 10 this year.
Regarding equitisation, about 45 enterprises have been approved for equitisation as of December 20, with total actual value of almost VND213.75 trillion, a six-fold increase over the value of enterprises equitised in 2016.
Value of State capital in these companies is VND88.39 trillion, 3.5 times higher than 2016’s value.
