State assets sold for $44.75 million over 10 months
State assets sold for $44.75 million over 10 months
A total of 42.3 million State shares sold from January-October fetched nearly VND1.04 trillion (US$44.75 million), according to the Ha Noi Stock Exchange (HNX).
The northern market regulator organised 11 auctions to offload the shares. The successful bidding value was 22 per cent higher than the value offered for sale.
In October alone, the HNX held one auction to help the State-owned power group Viet Nam Electricity (EVN) sell its stake in EV Finance Co (EVF).
EVN offered 2.65 million shares for sale that sold out for VND46 billion.
The amount and value of shares sold in the 10-month period was a big disappointment as the State was trying to exit non-core companies.
Due to the COVID-19 pandemic, purchasing power from investors has declined this year making it hard for the State to complete its divestment plans for 2020.
In November, the State plans to sell its ownership in five State-owned enterprises including Viet Nam Vegetable Oils Industry Corporation (Vocarimex), Viettel Post Joint Stock Corporation, and Viet Nam Agriculture Tourism JSC (Agritour).
Vocarimex failure
The Ha Noi Stock Exchange on October 29 announced the auction of State shares in Vocarimex scheduled for November 4, but the plan was cancelled due to lack of interest.
The State Capital Investment Corporation (SCIC) – the representative controlling the State ownership in SOEs – offered more than 44.2 million Vocarimex shares, or 36.3 per cent of the company’s capital, for sale at a minimum bidding price of VND22,690 ($0.98) per share.
After HNX’s announcement, Vocarimex shares (UPCoM: VOC) had dropped as much as 7.82 per cent, ending Thursday at VND17,000 apiece.
SCIC put the shares up for sale in July 2019 for VND22,300 apiece but that deal also failed.
The biggest shareholder in Vocarimex is Kido Group, which owns 51 per cent of the capital.
From January-September, Vocarimex earned VND2.02 trillion in net revenue and VND163 billion in post-tax profit, up 10 per cent and 13 per cent on-year, respectively.
