VNPT fails to attract investors for 7 non-core businesses

Visual from VNPT website

The Vietnam Posts and Telecommunications Group (VNPT) announced on its website that it has failed to attract buyers for seven of it’s group companies, scheduled, stake for which were to be auctioned on March 31.

Vietnam’s oldest state-owned telecom group was to divest from joint stock firms under the restructuring scheme, which has been approved by the Vietnamese prime minister.

The shares were registered to be sold on the trading platforms of the Wall Street Securities Company and Vietcombank Securities Company,

However, both securities companies said that none of the investors in the local capital market have registered to purchase the holdings of VNPT in the seven businesses, including Vung Tau Post & Telecommunications Construction and Investment JSC (200,000 shares), other post and telecommunication installation units in Hue, Da Lat and Bac Lieu, the BIDV-led Vietnam Investment Fund, the Central Post Construction JSC and Da Nang Informatic Technology Design.

This failure has put a spanner in VNPT’s target to earn a proceed of $56 million from divestment in the first quarter. Meanwhile, the group will have to exit 63 companies, across various sectors such as banking, insurance and construction, where its total investment stands at $107.5 million.

The non-fulfillment of the sale might be attributable to the organisations that VNPT chose to auction its shares, as Bui Hoang Hai, deputy director of the Vietnam State Securities Commission’s issuance management department, suggested that companies should file for auctions at a more concentrated place, like the stock exchange, where it can help attract more investors.

Related stories:

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Vietnam hastens IPOs of state-owned firms

Singapore Reporter/s

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).

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

  • 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.

Singapore Reporter/s

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).

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

  • 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.