Electronics company Hanel to sell 61 percent stake hinh anh 1Illustrative image.(Source: vietnamnet)

State-owned electronics and IT firm Hanel Co Ltd. has been given permission to sell a 61 percent stake to strategic investors in an equitisation expected within this year.

This proposal was approved by Deputy Prime Minister Vu Van Ninh while the Hanoi People's Committee is responsible for selecting suitable investors, either foreign or domestic.

Hanel, whose businesses span from the electronics and IT sectors to real estate, auxiliary industry and logistics with 37 affiliated companies, will have charter capital of 1.93 trillion VND (85.8 million USD) after the initial public offering (IPO).

According to the approved plan, Hanel will auction 9.94 percent of the capital to the public while state ownership will account for 29 percent. Strategic investors will be allowed to buy 61 percent while its employees will be offered 0.06 percent.

"Equitisation is a historic turning-point of Hanel," Nguyen Quoc Binh, Hanel's Chairman cum CEO, was quoted as saying to the financial website baodautu.vn.

Binh said equitisation was a big challenge but also offered a chance to renovate the company as well as reinforce human resources and expand its business strategy.

Hanel is known as the investor of the Hanoi-based Daewoo hotel after acquiring 70 percent of the hotel's capital in 2012 after the parent Korean firm Daewoo went bankrupt.

The 30-year-old company was the first Vietnamese enterprise to introduce the made-in-Vietnam Hanel TV. It has also been a pioneer in developing auxiliary industry to support the development of the electronics sector in the country.

To develop its brand name to investors before the IPO, the Hanoi-based firm has deployed many big projects this year.

Of note, it has been picked up to provide the information technology system to serve the implementation of the national single window mechanism in the Ministry of Transport. The mechanism, which helps administrative reform towards an e-government, later will connect to other ministries including Industry and Trade, Finance, Health and Agriculture and Rural Development.

It is also the leading investor in a 11 trillion VND (488.9 million USD) tech park project in Hanoi.

Binh said the company was seeking long-term investors to research and develop IT applications and automation engineering in key sectors of the domestic economy. In particular, Hanel was focusing on biotechnology, cybernetics and nanotechnology.

According to the information on the company's website, Hanel's annual revenues reach around 7 trillion VND (311 million USD).-VNA