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.
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.