Being an affiliate company of Vinalines, the equitisation of Sai Gon Port company is expected to help Vinalines restructure its debts. – Photo

HCM CITY (Biz Hub) – The Sai Gon Port Ltd Company has made a proposal to the member committee of the Vietnam National Shipping Lines to approve the value of its business at about VND3,955 billion.

While the value of the company is estimated to be VND3,955 billion or roughly US$183 million, the State's contribution was more than VND2,000 billion by January 1, 2014, double the value when it was examined at the end of 2013.

The move is considered to be an important step for the biggest portal service provider under Vinalines to complete its equitisation by early 2015.

The government had agreed to reduce its stake in the business from 75 per cent to 51 per cent. Business news website Bizline reported this to be a strategy to attract private investors.

If the company's initial public offering takes place smoothly, Vinalines will be able to gain trillions of dong. If the money made from equitising Sai Gon Port is added to the proceeds received from equitising small affiliate companies, Vinalines will reportedly have a large amount of money to restructure its debts since the corporation is encountering financial difficulties.

Vinalines recorded a debt of nearly VND7 trillion or $329 million in 2013, while its accumulated debts surpassed VND19 trillion or $894 million by the end of 2013.

So far, businesses providing portal services under Vinalines that have been equitised include Hai Phong, Da Nang and Quang Ninh, as well as Nha Trang, Khuyen Luong and Quy Nhon.

Meanwhile, five other portal businesses in which the State has 100 per cent stake are Sai Gon, Cam Ranh, Can Tho, Nam Can and Nghe Tinh. These companies are scheduled to be fully equitised by the first quarter of 2015. - VNS