Transport Ministry to sell SOE share lots

Saturday, Jun 20, 2015 15:06

Here is a bus made by Vinamotor. The corporation is required to sell stakes in Civil Engineering Construction Corporation No 5 Joint Stock Company (Cienco 5) and Cienco 6 this year. — Photo
HA NOI (VNS) — Deputy Prime Minister Vu Van Ninh on Tuesday approved a Ministry of Transport request to sell Government stakes in seven State-owned enterprises (SOEs) in the form of share lots or share packages.

Of the companies, the Deputy PM asked Vietnam Railways Corporation to sell stakes in four companies - the Dong Mo Quarry Company, Railway Equipment Import Export Joint Stock Company (Virasimex), Railway Material Joint Stock Company and Hai Van Nam Hotel.

He also asked the Vietnam Motor Industry Corporation Joint Stock Company (Vinamotor) to sell stakes in the Transportation Investment Joint Stock Company.

In addition, the Deputy PM also gave approval for the transport ministry to sell all Government stakes in Civil Engineering Construction Corporation No 5 Joint Stock Company (Cienco 5) and Cienco 6.

These companies will be privatised after the Prime Minister issues a decision that regulates the sale of SOE stakes in share lots.

In fact, the Government has allowed the State Capital Investment Company (SCIC) to experiment with the sales of Government stakes in SOEs in share lots in recent years.

Government share lots in SOEs are sold to strategic investors who are able to make big investments and commit long-term future to these firms.

SCIC has to auction the share lots in SOEs on the stock exchange if the value of a share lot exceeds VND10 billion (US$463,000) from June to the end of this year.

Firms for sale are required to be unlisted and to have made profits during the last two years.

The SCIC will auction the first share lots on the Ha Noi Stock Exchange next week.

The Ha Noi Stock Exchange said that the auctions were expected to be good experiences for other SOEs in the future. — VNS

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