Vietnam’s Vinalines acquires 75% stake in Quy Nhon seaport

Photo: Tuan Thanh Cao/Unsplash

Vietnam National Shipping Lines (Vinalines) has acquired a 75 per cent stake in Quy Nhon seaport for VND 415 billion ($17.8 million), local media reported.

HNX-listed Vinalines bought back the stake in the seaport that had earlier had been sold to Hop Thanh Investment & Mineral JSC.

In 2013, Quy Nhon port was transformed into a joint stock company with a charter capital of more than VND 404 billion ($17.3 million). Vinalines owned more than 75 per cent stake of the port while the remaining shareholders held 24.9 per cent.

Quy Nhon port is one of Vietnam’s important seaports with a storage system spanning 20,960 warehouses. In total, it covers an area of 306,568 sq m.

Vinalines in September conducted its initial public offering (IPO) on the Hanoi Stock Exchange (HNX). The Vietnamese government raised VND 54.35 billion ($2.33 million) from selling a 34.8 per cent stake in Vinalines, generating way lower than its lofty target of  $210 million.

Under the initial plan, Vinalines planned to offer 207 million shares, or a 14.8 per cent stake, to strategic investors. The remaining shares were to be sold to employees of the company.

However, the firm did not find a suitable strategic investor even though SK Holdings, South Korea’s third-largest multilateral business conglomerate, had expressed interest.

The state still holds a 65 per cent stake in Vinalines after the IPO.

Vinalines posted net revenue of VND 2.76 trillion ($118 million) in the first quarter, down 10 per cent year-on-year.