Vietnam Electricity to divest from finance company
The move aims to meet a Government regulation that requires State-owned corporations and groups to divest from non-core business.
The Vietnam Electricity (EVN) will divest all its capital from the EVN Finance Company (EVF) next month.
The move aims to meet a Government regulation that requires State-owned corporations and groups to divest from non-core business.
According to an announcement from the Ha Noi Stock Exchange, it will hold an auction to sell 18.75 million EVF shares, equal to 7.5 per cent of EVF’s charter capital, at initial price of VND13,480 apiece on August 23. If successful, the EVN will earn more than VND252 billion (US$10.82 million) from the deal.
EVF has many shareholders, of which the two largest are the An Binh Commercial Joint Stock Bank with a holding of 8.4 per cent of the company’s charter capital and EVN with 7.5 per cent.
EVN Finance was established in 2008 with charter capital of VND2.5 trillion. Initially, the company took a leading role in arranging capital and managing capital for EVN's power projects. It also provides other financial products and services such as capital mobilisation and receiving deposits of organisations.
EVF last year posted net profit of VND204 billion, up 13 per cent against the previous year. In the first half of this year, the company also recorded a profit of more than VND88 billion, up 6.5 per cent year-on-year.
The company’s total assets by the end of June were at VND19.75 trillion.
EVF listed its shares on the Unlisted Public Companies Market in August last year at reference price of VND12,200 apiece. However, the stock dropped sharply after that to some VND6,000 apiece and has recently started recovering. The share closed at VND7,800 on Thursday, up 8.3 per cent from the previous session. — VNS
