Vinalines to raise $93.5m via ports divestment

The visual of the crew from Vinalines website

Vietnam’s state-owned Vietnam National Shipping Lines (Vinalines) will be reducing stake in several major ports, including the historic Saigaon Port. The company hopes to raise VN 2 trillion  (about $93.5 million), through the proposed plan to equitise its ports.

According to the official statement, the government officials have just passed a decree to reduce ownership in several major ports along the Vietnam coastal line. In particular, the State plans to reduce it’s holding in the Saigon Port (the twenty fifth largest port in the world), from the existing 75 per cent to 50-60 per cent.

The company is said to be looking for three strategic partners, for the equity made available through dilution of the state’s stake.

Saigon Port is worth approximately VND 3,955 billion ($187 million); the state’s shareholding is the port is valued at VND 2,162 billion ($98.2 million).

According to the Vinalines financial statements,  the revenues from IPOs of its group companies (which went public during the first three quarters of 2014)  have not been in line with expectations. The four of the largest ports – Hai Phong, Quang Ninh, Nha Trang and Da Nang – sold for less than five  per cent of the total shares issued; the divestment target was about five times larger.

According to Le Anh Son, CEO, Vinalines, this was mainly because the State continues to hold a majority stake in these ports (about 75 per cent). The continuing government ownership, made the ports unattractive to investors, the CEO said while addressing a press conference.

Vinalines has completely exited CaiLan International Container Terminal Company (CICT) where it held about 57 per cent equity stake, which was sold for VND 206 billion.

All the divestments are part of the planned financial restructuring of Vinalines. According to the company website, it will divest in 23 subsidiaries and 22 associated members of the group before the end of 2015. “Vinalines is expecting to earn more than VND 2 trillion from the divestment, which are being carried out to offer financial reform and improve management efficiency of the ports,” said Le Anh Son.

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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.