Petrolimex's Board of Directors recently approved a resolution amending its divestiture strategy at Dong Nai Building Material and Fuel JSC (BMF).

The Board of Directors approved the adjustment of the company’s divestment plan in BMF by the order matching method on the UpCom stock exchange.

Petrolimex will dispose of all 443,500 BMF shares, representing 10.66 per cent of BMF's outstanding shares.

The order matching price is not lower than the value determined by an independent price appraisal organisation. The executive date is set for 2023.

Previously, Petrolimex announced at the end of January that it will offer all 443,500 BMF shares in a public auction on March 8 at a starting price of VND40,900 per share (US$1.73) on the Hanoi Stock Exchange (HNX).

However, in early March, HNX announced that it would not perform an auction of BMF shares owned by Petrolimex on March 8 due to the expiration of registration and deposit, but no investors registered to participate in the auction.

Pursuant to Article 14 of the Regulation on Share Auction with Decision No 8, the auction is not eligible to be held.

On the stock market, BMF shares tumbled 8.21 per cent to close Monday at VND49,200.

Nguyen Hoang Linh, Director of Dong Nai Building Material and Fuel, sent an explanation document to the State Securities Commission and HNX after BMF shares hit the ceiling prices in five consecutive sessions from June 21-27.

In the past six months, BMF shares have increased by 60.9 per cent, with the highest closing price of VND60,800 on June 28 and the lowest closing price of VND22,000 on June 7.

Under the approved restructuring and divestment strategy for the 2021-25 period, Petrolimex successfully and completely divested from PG Bank on April 7.

Petrolimex will maintain a controlling ownership rate in member companies during the 2021-25 period.

Particularly, the company will continue to hold 100 per cent ownership at 43 companies operating in the petroleum business as well as Petrolimex Singapore Company Limited.

It also has a roadmap to divest, directly or indirectly, 100 per cent of Petrolimex Laos One Member Limited Company’s shares. — VNS