Divestment earns transport ministry $107m

Tuesday, Nov 17, 2015 08:25

The ministry also launched initial public offerings (IPOs) at eight enterprises, including at the Transport Hospital on October 21. — File Photo

HA NOI (Biz Hub) — The Ministry of Transport divested from non-core businesses in 36 State-owned enterprises under its management in the first 10 months of this year, collecting nearly VND2.4 trillion (US$107 million).

The ministry also launched initial public offerings (IPOs) at eight enterprises, including at the Transport Hospital on October 21. Meanwhile, 18 companies organised the first shareholder meetings after their equitisation.

These figures were reported at a conference of the steering committee for enterprises renewal and development late last week.

The figures were appreciated as being good results in the context that many provinces and ministries have fallen short of privatisation targets.

Early this month, the transport ministry approved a scheme to equitise 24 subsidiaries under the Viet Nam Railway Corporation (VRC) by the end of this year. According to the plan, VRC must launch IPOs of these companies before December 31 and organise shareholder meetings for these subsidiaries to operate as joint stock companies in January next year.

Only two companies have set the date for the IPOs so far. They are the VRC's largest subsidiaries, with the Sai Gon Railway Transport Company's IPO set for December 7 and the Ha Noi Railway Transport Company's IPO to be launched on December 10.

The Airports Corporation of Viet Nam, one of the country's largest state-run firms as well as of the airport industry, will also launch an IPO on December 10. It is seeking to sell a 3.47-per-cent stake, or 78 million shares, to the public for at least $41 million.

The ministry had earlier endorsed the equitisation plan of 10 public service units in the fields of health, training and education, including four road vehicle registration agencies, four schools and two hospitals. The Prime Minister has allowed the ministry to pick one or two vehicles registration and education units for equitisation.

The ministry has also proposed to the government that the equitisation plan of the debt-laden Viet Nam National Shipping Lines (Vinalines) should be approved.

Regarding divestment from non-core businesses, it has shown the green light to a plan to sell shares in batches of its holdings in the Civil Engineering Construction Corporations No 5 and No 6 (Cienco 5 and Cienco 6), the Viet Nam Motor Industry Corporation and the Viet Nam Waterway Construction Corporation. — VNS

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