Vietnam National Shipping Lines (Vinalines) has just been re-valued at VND 21 trillion ($982 million) by the Committee of Equitization in a plan to launch its IPO in the first quarter of 2015.
The new value of Vinalines has been increased by VND 2.9 trillion ($135.6 million) compared to the company’s book value.
Vinalines officials are urging the committee to finish its equitization plan for the share auction in the first quarter of 2015, in which Vinalines will divest about 65 to 70 per cent equity stake.
Vinalines also announced a divestment of 13.2 million shares, equivalent to 21.08 per cent, in the Danang Logistic Company (Danalog) at the starting price of VND 12,000 per share.
Vinalines has been divesting in several of its subsidiaries (Maritime Bank, NhaTrang Port, Vinalines Real Estate JSC, Vat Cach Port Corp, Maritime Engineering and Services JSC) as part of its restructuring process.
Nguyen Hong Truong – Deputy Minister of Transportation and Head of the Committee of Equitization – said that the government is willing to let go of a huge proportion of the equity stake in Vinalines because they do not need to hold controlling stake. He added that the divestment target is possible to achieve as Vietnam has a very long coastal line and the maritime transport market is recovering gradually.
The government plans that Vinalines will float at the same time as the Saigon Port, which has been valued at VND four trillion ($187 million). Although a decree passed by the PM in June defines that the state must hold more than 75 per cent equity stake in ports and harbors, a recent announcement said that the government is willing to reduce ownership to about 51 per cent in major ports such as HaiPhong, Da Nang, SaiGon.