According to an announcement from the Ha Noi Stock Exchange (HNX), the exchange will hold an auction for Vinh Son JSC shares, owned by Military Industry and Telecoms Group (Viettel), on Tuesday.

The auction offers a batch of shares with a volume of nearly 4.6 million units, equivalent to 39.9 per cent of Vinh Son's charter capital. The starting price of the auctioned shares is nearly VND922.5 billion (US$40.3 million).

In the latest update, there has been one Vietnamese individual registering to buy all shares in the batch of this auction. The deadline for submitting the competitive offer form is at 2pm on Tuesday.

Vinh Son has a charter capital of VND1.15 trillion. As of June 30, the company’s shareholder structure has three shareholders including two organisations and one individual. Of which, Dragon Village Real Estate JSC owns 60 per cent, Viettel holds 39.9 per cent and Nguyen Khanh Trung personally owns 0.1 per cent of the capital.

The company operates in the real estate sector, with outstanding construction project the 75.51ha Rose Valley Urban Area in Vinh Phuc and Ha Noi.

However, this project is in the process of initial investment and has not yet recorded revenue in the second quarter of 2021. The company's main source of income in the past few years has come from a number of non-core activities such as renting photo locations.

In the first half of 2021, it recorded net revenue of nearly VND85 billion, down 12 per cent year-on-year, with profit after tax reaching VND3.4 billion. Compared to the plan for the whole year, Vinh Son has only completed 19 per cent of the revenue target and 23 per cent of the full-year profit plan.

The auction of 4.6 million shares of Vinh Son is part of Viettel's investment divestment plan under the restructuring plan for the 2016 - 2020 period approved by the Prime Minister.

Accordingly, Viettel is determined to boost its plan to divest investment capital in non-core industry to focus on investing in core activities of telecommunications infrastructure construction and operation. — VNS