SCIC to divest from FPT Telecom soon

Wednesday, Dec 14, 2016 18:26

Customers use FPT Telecom services. The State Capital Investment Corporation is expected to divest from the telecommunications firm early next year. -- Photo

The State Capital Investment Corporation (SCIC) is likely to divest from FPT Telecom early next year, a Ministry of Finance official said.

Dang Quyet Tien, deputy director of the ministry’s corporate finance department, told recently that the move is part of the SCIC’s efforts to withdraw capital from several major enterprises in early 2017.

The SCIC will sell its entire 50.16 per cent stake in the telecommunications firm, which registered charter capital of more than VND1.37 trillion (US$61.99 million) with the Viet Nam Securities Depository.

The depository certified FPT Telecom as listing about 1.37 million shares, coded FOX with a face value of VNĐ10,000 each, on the Unlisted Public Company Market earlier this month.

FPT Telecom’s third-quarter financial report said the company earned VND4.92 trillion in net revenue from sale of goods and services in the first nine months of this year, up 20 per cent over the same period last year.

The firm earned VND848.46 billion in pre-tax profit in the nine months, a year-on-year increase of 5 per cent.

According to Thoi bao Kinh te Viet Nam (Vietnam Economic Times), FPT Telecom has paid dividends in cash at a rate of 40 per cent every year – a “golden” level in the local market.

FPT Telecom also contributed about 40 per cent to the annual profit of its parent firm – technology giant FPT, which holds a 45.64 per cent stake in the subsidiary.

Earlier this year, the Government urged the SCIC to withdraw capital from 10 major businesses, including FPT Telecom, Bao Minh Insurance Corporation, Viet Nam Infrastructure Investment & Development JSC, Ha Giang Mineral Mechanics JSC, and Viet Nam Dairy Products JSC (Vinamilk).

The remaining five are Viet Nam National Reinsurance Corporation, Tien Phong Plastic JSC, Binh Minh Plastic JSC, Sa Giang Import Export Corporation and FPT.

The SCIC auctioned a 9 per cent stake of Vinamilk on the HCM City Stock Exchange on Monday. It sold a stake of 5.4 per cent to foreign investors, gaining more than VND11.28 trillion. — VNS

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