The blast-furnace No 1 of Hoa Phat - Dung Quat Iron and Steel Integrated Complex. (Photo: hoaphat.com.vn) Foreignshareholders play important roles in supporting business activities andcreating a good image for public listed companies. After achievinginitial cooperative targets, some organisations plan to disinvest.
Vietnamesecompanies witnessed the withdrawal of many foreign investors, but theirbusinesses are still growing due to accumulative management skills during thecooperation period.
LucerneEnterprise Ltd and NS Advisory Inc Pte.Ltd of Nikko Indonesia soldmillions of Licogi 16 (LCG) shares at the end of 2020. The Indonesianshareholders started to invest in LCG in 2014.
The LCGshares price ended last Friday at 14,750 VND, up 96.4 percent year-on-year. Theshare price almost hit a ten-year high of 16,000 VND in the second week ofJanuary.
On April2020, Dragon Capital sold off Century Land JSC (CRE) shares and the pricereached a historic high of nearly 29,000 VND at that time, 2.3 times higherthan its bottom level.
Earlier thisyear, PENM III Germany GmbH & Co. KG also registered to sell more than66.5 million shares of Hoa Phat Group JSC (HPG) shares which accounts for 2.01 percentof the company's charter capital. The deal will be held from January 7 toFebruary 2.
Accordingto PENM III, the investment to Hoa Phat has brought great profit, and thesale is due to the expiry of the fund which closes in 2021.
The shareselling pressure has made the share price fluctuate, but it is still oncourse for a high of nearly 45,000 VND.
On January22, the shares traded at 43,650 VND, up nearly 69 percent against the sameperiod last year.
Recently,Creed Investments VN-1 Ltd of Creed Group registered to sell more than 4.5million shares of An Gia Real Estate Investment and Development Corporation(AGG), equivalent to 5.5 percent of its charter capital. On the first tradingday of the deal which was on January 19, the market recorded the amount ofbuying in AGG stocks almost the same with the amount that CreedInvestments registered to sell.
The AGGshare price edged higher on January 22 to 36,000 VND.
"These disinvestmentswere calculated in most of foreign investors' long-term strategies and were forprofit booking when the stock market surged to a historic peak of 1,200points," a senior market analyst told Vietnam News on the condition ofanonymity.
The analystalso added that with the current conditions of Vietnam's market including thecontrol of the COVID-19 pandemic and positive economic growth, moreforeign capital is coming.
Companies alsoexpect the disinvestment of big foreign shareholders and have prepared forit, according to the analyst. The cooperation with foreign investors helpsimprove the companies' management skills and business strategies. Hence, thedisinvestments according to plans will not affect the companies' internalfactors.
Moreover,foreign investors like Creed Investments, PENM III and Dragon Capital willuse money from the share sales to reinvest in the same or differentcompanies and projects in the future./.
VNA
