PV Oil names four competitors for strategic investor position
PV Oil names four competitors for strategic investor position
Vietnam Oil Corporation (PV Oil) has released the names of four competitors meeting the criteria to join the auction to become its strategic investor, two of whom are foreign investors from South Korea and Japan.
The four investors include two foreign firms, namely SK Group (South Korea) and Idemitsu (Japan), as well as domestic firms HDBank and Sovico Holdings.
PV Oil will organise a public auction to select the strategic investor paying the highest price. The government is expected to acquire VND9 trillion ($397.4 million) from the deal in case the starting price at auction starts at the initial price of the IPO (VND13,400 apiece).
According to Decision No.1979/QD-TTg, PV Oil will have to complete the sale of shares to strategic investors within three months after its equitisation plan is approved.
However, Cao Hoai Duong, general director of PV Oil, stated that this time the company issued stricter criteria for strategic investors, thus, it is necessary to extend the deadline so that interested investors have time to negotiate.
Thus it requested the Ministry of Industry and Trade and the prime minister to extend the deadline to early July. At present, PV Oil is waiting for the prime minister’s approval.
According to the approved equitisation plan, PV Oil will offer 44.75 per cent for strategic investors.
Earlier in January, PV Oil succeeded in conducting its IPO by selling all 207 million shares, equalling 20 per cent of its charter capital.
The Ho Chi Minh City Stock Exchange has published the results of PV Oil’s auction. Accordingly, 1,378 investors, including 45 organisations and 1,333 individuals went home with shares in their pockets. Foreign investors only bought 68.47 million shares, equalling 33 per cent of the offered share volume.
The lowest selling price was VND19,200 ($0.85), VND5,800 higher than the offered price.
PV Oil’s IPO went beyond expectations as six months ago company leaders stated that reaching the selling price of VND15,000 ($0.66) would already be satisfactory. Meanwhile, Viet Capital Securities expected the selling price to be VND18,000 ($0.79).
