The first quarter of 2015 is about to end, and Vietnam is moving forward with its state-owned enterprise equitisation, which will see two corporations from the southern Binh Duong province auction shares. Meanwhile, the Southern Airport Services JSC, which was equitised last year, has planned to list on the stock exchange within the next nine months of 2015. In the construction sector, the Ho Chi Minh City-based firm CII has raised its holding in Nam Bay Bay Investment Corporation.
CII ups stake in peer NBB
Ho Chi Minh Infrastructure Investment (CII) has announced that it will buy another batch of 620,000 shares of the construction company Nam Bay Bay Investment (NBB), increasing its stake from the existing 13.9 per cent to 15.06 per cent. The deal follows CII’s purchase of 1.31 per cent in NBB last month.
NBB reported a stable profit growth in recent years. Last year, the company’s profit reached VND34.6 billion ($1.6 million), increasing 36.7 per cent year-on-year. However, while revenue in the fourth quarter of 2014 rose strongly, profit plummeted by 100 per cent to VND34.8 million ($1,600). As explained by the company, it recorded a loss from divesting 50 per cent in Da Den Hydropower Investment JSC.
Meanwhile, CII estimates that its net profit for 2014 will be at VND380 billion ($17.8 million), jumping more than 340 per cent over 2013 and exceeding 63 per cent of the year’s target.
Provincial committee to equitise two corporations
The southern city of Binh Duong, Vietnam, plans to equitise two state-owned companies this year – the Becamex IDC Corporation and the Thanh Le General Import-Export Trading Corporation (Thalexim).
Accordingly, the state capital will account for 75 per cent of the total charter capital after the initial public offer (IPO) in both companies. A steering committee has been established to build the equitisation schedule as well as to arrive at the corporate valuation of the two firms, said vice chairman of the province’s People’s Committee, Tran Thanh Liem.
Since its establishment in 1976, Becamex IDC Corp has invested mainly in construction of industrial zones, resident areas and urban traffic infrastructure. The $397.56 million corporation is holding a 35 per cent stake in the Becamex Tokyu Co Ltd, a joint venture with Japanese major private railway operator and land developer Tokyu Corporation.
Launched later in 1992, Thalexim’s lines of business include petroleum, real estate and shipping. The VND601 billion ($28.2 million) company is one of both the 500 largest enterprises (VNR500) and the 500 fastest growing companies (FAST 500) in Vietnam last year.
SASCO will list shares in 2015
SASCO, which held an IPO last September at the exchange for an average price of VND19,330 and has a charter capital of VND1.3 trillion ($61 million), is now wrapping up procedures for listing on UPCoM, in the second quarter.
The Government owns 51 per cent of the company, leaving the rest to strategic partners (almost 24 per cent), the public and the employees.
The company’s interests include duty-free shops, foreign currency exchange, transportation and others.
This year it expects to earn a profit from operations of almost VND165 billion, rising to VND176 billion in 2016. Last year’s earnings were VND86 billion.