As the Vietnamese government urges state-run corporations to divest and equitise, the activity of selling stakes and seeking strategic partners is gathering pace, especially in the shipping and the banking sector, in deals involving the Vietnam National Shipping Lines Corporation and Techcombank.
Besides, Mobile World Group, Vietnam’s largest mobile device retailer, continues to prosper.
State to sell stake in Hai Phong Port to Oman investor
The Vietnam National Shipping Lines Corporation (Vinalines) is allowed to sell between 19.68 and 29.58 per cent in Hai Phong Port Joint Stock Company, the largest port in the north of Vietnam, to Vietnam – Oman Investment Joint Stock Company (VOI).
Currently, Vinalines owns a 94.68 per cent stake in the $157.1 million port operator.
The transaction will be made through direct negotiation. The price for the transaction shall not be lower than the average price of Hai Phong Port’s recent initial public offering, which stood at $0.63.
VOI has pledged at least a 10 year partnership with Hai Phong Port. Meanwhile, the Ministry of Planning and Investment said Vinalines should gradually divest from the port company and see how the Oman investor would support its operation before selling a larger stake.
VOI is a joint venture between the State General Reserve Fund of Oman and the State Capital Investment Corporation of Vietnam, focusing on the private equity market of Vietnam and aiming at becoming a leading private equity house in the country.
Techcombank acquires financial firm
Techcombank has completed the purchase of 89.87 per cent in Vietnam Chemical Finance Company (VCFC) to increase its stake to 99.87 per cent, becoming the fifth lender to acquire a financial firm, after HDBank, VPBank, Saigon – Hanoi Bank and Maritime Bank.
In August 2013, HDBank took over the $24.4 million wholly French-owned Société Générale Vietnam Finance Company. VPBank acquired Vinacomin Finance firm for $46.9 million, while Vinaconex – Viettel Finance Company was merged with Saigon – Hanoi Bank. In May last year, Maritime Bank bought 64.1 per cent in Vietnam Textile and Garment Finance Company.
The banks are preparing for the upcoming regulation under which, they have to establish finance companies in order to offer consumption loans.
VCFC was set up in March, 2009 with a charter capital of VND300 billion, then increased the capital to VND600 billion. Techcombank was one the founders of the company, investing an intital amount of VND60 billion.
Mobile World issues $27.5 mln ESOP shares
Last month, Mobile World Group (MWG) issue 5.33 million ESOP shares to around 600 of its employees. The share is currently traded at VND110,000 per unit valuing theESOP program at around $27.5 million.
On average, each of the employees received nearly 9,000 shares worth some VND1 billion. The shares are not transferable until December 13 next year.
Chairman and CEO of Mobile World Group Nguyen Duc Tai, got 387,700 ESOP shares worth roughly $2 million. In addition, he currently owns 2.67 million MWG shares directly and 15.45 million shares indirectly through Retail World Investment Consultancy.
He ranks seventh in wealth on the Vietnamese stock market with an asset of approximately $93.9 million.
The company estimates its revenue and profit for 2014 at VND 15.8 trillion ($741.8 million) and VND 670 billion ($31.45 million) respectively. This year’s target is VND23.59 trillion in revenue and VND886 billion ($41.6 million) in net profit.