The PetroVietnam Oil Corporation (PVOIL) has selected four investors who are qualified to become strategic shareholders of the firm. (Photo: VNA) Hanoi (VNA) – The PetroVietnam Oil Corporation (PVOIL), an subsidiaryof the Vietnam Oil and Gas Group (PetroVietnam), has selected four investorswho are qualified to become strategic shareholders of the firm, PVOIL GeneralDirector Cao Hoai Duong said at a meeting with its shareholders on May 22.
Two foreign investors are SK Group of the Republic of Korea and Idemitsu Companyfrom Japan - one of the investors of the Nghi Son oil refinery project. Othertwo eligible domestic investors include HDBank and Sovico Holdings.
PVOIL received shareholder registration applications in which investors wantedto buy a number of shares equal to 2.8 times of the shares offered, Duong said,adding that some investors want to purchase 35 percent of the PVOIL stakeswhile others wished to acquire all of them.
Therefore, the firm will organise a share auction so that the State can earn asmuch as possible from the divestment. With this action, it is likely that theState can rake in some 9 trillion VND (398 million USD), Duong estimated.
Earlier, on January 25, the Government raised 4.18 trillion VND (184 millionUSD) through the sale of a 20 percent of shares in PVOIL’s initial publicoffering.
As requested by the Government, after the offering, the corporation mustcomplete the sale of 44.75 percent or 462 million shares to strategic investorswithin three months. However, PVOIL needs more time to negotiate with investorsdue to some strict criteria.
One of the criteria is that strategic investors have to allow PVOIL to purchaseproducts manufactured by Dung Quat and Nghi Son refineries for ten years. Inaddition, they are not allowed to transfer shares within ten years to ensuretheir commitment.
The company has asked the Government, the Ministry of Industry and Trade andthe Vietnam Oil and Gas Group for time extension. It will work to completeselling shares to strategic shareholders in July and organise the first generalshareholders meeting in August to ensure benefits of other investors.
If approved, PVOIL will auction its shares to strategic investors on the Ho ChiMinh Stock Exchange to assure publicity and transparency. Once the auctionsucceeds, the State will no longer hold a controlling stake as its ownershipwill be reduced to 35 percent.
Earlier, eight investors were enticed to PVOIL shares, including SovicoHoldings, Shell, Idemitsu, Kuwait Petroleum International, Puma, SK, PTT andSacom Investment Fund.-VNA
VNA
