Vietnam’s Petrolimex to sell 20% to Japanese partner to reduce state holding

Petrolimex petrol station, visual from the company's website

The Vietnam National Petroleum Group (Petrolimex) on Tuesday said it will sell 20 per cent stake to its Japanese strategic partner, in order to reduce the state holding to 75 per cent.

Dinh Viet Tien, the group’s head of supervisory board, revealed that Japan’s JX Nippon Oil and Energy Corporation had been cooperating with the group since signing a memorandum of understanding in December, 2014. Meanwhile, the state ownership in Petrolimex is currently 95 per cent.

“The Japanese investor operates in the same industry and has a strong financial capability. If the government approves, the strategic partnership can be formed within this year,” said Petrolimex chairman Bui Ngoc Bao.

Also in the remaining time of the year, Petrolimex will boost investment in large projects, such as the Nam Van Phong refinery.

JX Nippon Oil and Energy will work with the Vietnamese petrol giant and will jointly construct the project, which was scheduled to be completed in 2013. However, the project failed to meet its deadline and the cost projections have shot up to $8 billion (from $4.8 billion). The southern Khanh Hoa-based plant is re-slated for a  2020 completion. It will be capable of handling about 200,000 barrels daily.

In addition, Petrolimex will implement exits and restructure its holdings in PG Insurance, PGBank and Petrolimex Land.

On May 22, PGBank and Vietinbank inked a contract on the two’s merger and partnership between Petrolimex and Vietinbank. PG Insurance is listed on the stock exchange, while Petrolimex Land is currently traded on the over the counter (OTC) market.

Also read: PGBank, Vietinbank to merge at 1:0.9 share swap ratio

Petrolimex auctioned its initial public offer (IPO) in 2011, and has since then restructured the entire group, aiming to stabilise its operations as a joint stock company and to list shares on the secondary market.

Although the group’s consolidated revenue reached VND206.8 trillion ($9.6 billion) last year, it recorded a loss of VND9 billion, due to the slumps in global oil prices.

For the 2015 fiscal, Petrolimex targets to achieve VND2.45 trillion in profit before tax, in which the parent company is expected to account for VND448 billion.

Related stories:

Russia’s Gazprom Neft to buy 49% in Vietnamese Refinery

BIDV talking to 8 foreign investors for strategic partnership

Vietnam’s PVI Holdings forms strategic partnership with Korea’s Lotte Insurance

Vietnam’s insurer BIC to offload 35% to Canadian Fairfax in strategic partnership

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.