To ensure efficient divestment, PetroVietnam is working on a number of plans, including consolidating the two companies. (Photo: vietnamfinance.vn) Hanoi (VNS/VNA) - PetroVietnam is laying out plans to divest capital from the two biggest Vietnamese fertiliser companies – PetroVietnam Fertiliser & Chemicals Corp (DPM) and PetroVietnam Ca Mau Fertiliser Joint Stock Company (DCM) – to submit to authorities for consideration.
The plan did exclude the option of merging the two companies, the Vietnam National Oil and Gas Group (PetroVietnam) said.
The divestment is part of PetroVietnam’s overhaul plan for 2017-25.
The Ministry of Finance had previously asked the group to adjust its holdings in the two companies to 36 percent by 2020.
Under the ministry’s guidance, PetroVietnam had completed a divestment draft, cutting its ownership in the two firms to 36 percent during 2018-20. To ensure efficient divestment, PetroVietnam was looking at all options, including consolidating the two companies, it said.
Under a direction issued by the Prime Minister on August 11, 2017, PetroVietnam will reduce its ownership in Ca Mau Fertiliser from 75.56 percent to 51 percent and in Fertiliser & Chemicals from 61.38 percent to 51 percent this year.
At the 2018 annual shareholders’ meetings of the two companies, PetroVietnam said it would complete the divestment schemes by year-end.
At Ca Mau Fertiliser, the group has set up a steering committee and signed contracts with consultancy firms to construct a pricing and timetable for the divestment.
On the stock market, DCM is trading at around 11,000 VND (0.5 USD) per share, equivalent to the market value of more than 5.82 trillion VND (253.2 million USD). In the first six months of this year, the company achieved revenue of 3.24 trillion VND, up 7 percent year-on-year, but its net profit decreased 27 percent to 413 billion VND.
DPM is trading at around 18,000 VND per share on the Ho Chi Minh Stock Exchange, valuing the company at nearly 6.97 trillion VND (303 million USD). The company reported revenue of 4.8 trillion VND in the first half, up 10 percent, while its net profit reached 402 billion VND, down 13 percent from the same period last year.-VNS/VNA
