VNPT finds success in divestment plans
VNPT finds success in divestment plans
Vietnam Posts and Telecommunications Group (VNPT) has divested successfully from some units to gain high profit, which is a good start to the divestments to come.
VNPT has just announced that it has already handed over Post and Telecommunication Finance Co., Ltd. (PTF) to Southeast Asia Commercial Joint Stock Bank (SeABank). VNPT’s whole capital contribution to PTF should be transferred to SeABank by the August 22, 2018 deadline.
Divestment from PTF is one of VNPT’s plans and a target assigned by the prime minister in 2016. In February 2018, VNPT auctioned its entire holding in PTF at the initial price of VND500 billion ($22 million), which is the charter capital of the company stated in the business certificate granted in 1998.
After several rounds of public bidding, SeABank spent VND710 billion ($31.3 million) becoming the winner of the auction.
“VNPT has successfully divested from PTF as well as seized the charter capital before,” stated the representative of the Department of Business Management of the Ministry of Information and Communications.
Earlier, VNPT successfully auctioned off its stake in Aviation Information and Telecommunications JSC (AITS) to earn VND26.16 billion ($1.15 million). The group has doubled its initial investment of VND13.2 billion ($0.58 million).
Tran Manh Hung, chairman of VNPT, said that the group’s divestment plan has been coming along smoothly. Three companies have been evaluated in June, including Telecommunication Technical Service JSC (TST), Viteco Telecommunications Technology JSC (Viteco VNPT., JSC), and Nha Trang Post Hotel.
“These three companies received great attention from investors, so I think VNPT could divest them successfully,” said Hung.
According to Decision No.2129/2017/QD-TTg of the prime minister approving VNPT’s restructuring plan in 2018-2020, the group will divest from 41 companies. Some of the auctions organised were unsuccessful as no investors registered to buy.
In May 2018, VNPT auctioned the entirety of its 8.52 per cent stake in Saigon Postel Corporation (SPT) worth around VND102.5 billion ($4.5 million), with no success.
Another item that VNPT have attempted to divest three times is its 71 million shares in Maritime Bank due to the hard conditions set for investors. Additionally, VNPT has been having difficulties in the divestment of several small construction units.
The group expects that the successful divestment from PTF and AITS will provide momentum to its further divestments.
