Inside a FPT Shop store in Dan Phuong district, Hanoi (Photo: fptshop.com.vn) Hanoi (VNA) - Information technology group FPT Corporation (FPT) hasannounced it will reduce its ownership in its retail arm FPT TechnologyProduction Distribution and Retail to below 50 percent.
The group said in its management board’s resolution issued recently that thedivestment will be carried in 2017 and divided into two stages.
In the first stage, FPT will sell 30 percent to institutional investors toreduce its ownership to 55 percent from the current level of 85 percent.
Secondly, FPT will sell a maximum of 10 percent of its remaining stake in theretail and distribution arm to other investors via an initial public offering(IPO).
According to the Nikkei Asian Review, the sales of the distribution and retailarm could bring about 2.3-2.7 trillion VND (103-121 million USD) to the firm.The sale income could be used to improve its technological infrastructure andprovide new telecommunication services.
At the group’s annual shareholder meeting held in April, the group chairman TruongGia Binh said selling the distribution and retail arm was a must so FPT couldbecome a pure ICT group with rapid growth.
HCM City Securities Corporation (HSC) said in a report that the deal could befinalised in the third quarter of this year.
According to HSC, the IPO price has not been determined as FPT did not want itsshares to be owned by a single investor, however, it could be lower than theshare price of Mobile World Corporation.
HSC also said that FPT Retail could trade on the HCM Stock Exchange (HOSE) in2018.
[FPT reportedly selling distribution business]
Shares of FPT, listed on the HOSE under code FPT, closed on August 2 up 0.8 percentat 49,400 VND per share. Shares of Mobile World Corp on the same exchange endedat 99,500 VND per share.
FPT also plans to increase charter capital for FPT Software LLC to 1.3 trillionVND from the current 1 trillion VND, marking the group’s efforts to switch itscore business from retail to technology and telecommunication.
The group also announced it will make a 10-percent cash advance payment for2017 dividend payout, meaning shareholders will receive 1,000 VND for everyshare.
The group will finalise the list of beneficial shareholders on August 18 andpayments will be made on August 31.
FPT in the first six months of 2017 recorded a post-tax profit of 1.21 trillionVND, a yearly increase of 12 percent.-VNA
VNA
