Vinatea to sell all State stakes

Wednesday, Jun 17, 2015 19:30

Workers pick tea leaves at plantation in Phu Tho Province. Viet Nam National Tea Corporation is slated to launch its IPO in the next three months. — VNA/VNS Photo Vu Sinh
HA NOI (Biz Hub) — State utility Viet Nam National Tea Corporation will launch an initial public offering (IPO) within three months under an equitisation plan newly adopted by Prime Minister Nguyen Tan Dung.

The company, also known as Vinatea, has a charter capital of VND370 billion (US$17.62 million) and will issue 37 million shares for the IPO. Each share has a face value of VND10,000 (US$0.48).

A stake of 63.74 per cent will be reserved for strategic shareholders, while more than 31.86 per cent of the equity will be sold to general investors, and nearly 4.40 per cent to employees. This will mean that the State will retain no capital in the company.

The Prime Minister has authorised the Ministry of Agriculture and Rural Development to select a stock exchange and a brokerage and set an initial price for the share auction, as well as guide the company to implement the bid.

He also asked this agency to collaborate with the ministries of Finance and Labour – Invalids and Social Affairs to review the company's staff arrangement schemes. The firm currently has some 1,320 employees and will curtail this number to 1,180 when it is privatised.

Vinatea will also issue additional shares to increase its charter capital in the future, according to the equitisation plan.

The Ha Noi-based firm has three subsidiaries: two affiliates in the northern Yen Bai Province and a business in Moscow, Russia. — VNS

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