VNR hopes to raise at least 139 billion VND in 2018 from selling its ownership in 15 subsidiary and affiliate companies (Source: tinnhanhchungkhoan.vn) Hanoi (VNA) - The Vietnam Railway Corporation(VNR) hopes to raise at least 139 billion VND (6.2 million USD) in 2018 fromselling its ownership in 15 subsidiary and affiliate companies, reported onlinenewspaper baodautu.vn.
Deputy Transport Minister Nguyen Ngoc Dongrecently signed Document 1142/BGTVT-QLDN, approving VNR’s selling of itsholdings in those 15 companies.
The 15 companies have total charter capital of680.5 billion VND, and VNR holds one-fifth of the figure, equal to 139.1billion VND based on the face value of shares (10,000 VND per share).
Those firms are divided into three groups. Nineof them are those in which VNR had previously sold parts of its ownership,including Transport Investment and Construction Consultant JSC, Da NangConstruction JSC and Railway Urban and Infrastructure Development InvestmentJSC.
Four of the 15 companies are those in which VNRhad previously put its shares up for sale, but failed to draw attention frominvestors. Those included Railway Construction Corporation and Project 3Construction and Investment JSC, which are traded on the stock market.
The remaining companies are mining business DongMo Stone JSC and My Trang Stone JSC. VNR will make its first attempt to sellstakes in these two companies.
Though shares of these companies are apparentlyunattractive to investors, they are highly valued by securities firms. Sharesof My Trang Stone JSC are valued at 11.2 times their face value, 4.2 times forDong Mo Stone JSC and 2.3 times for Railway Construction Corporation.
If the sales are carried out successfully, VNRcould raise more than 139 billion VND, to increase its spending on purchasingnew rail cars and upgrade large railway stations this year.
“The management board of VNR should ask foropinions from the finance and planning and investment ministries so that itcould develop the plan to sell its shares in those companies, while assuringthe deals comply with existing regulations and provide high income to the Statebudget,” Deputy Minister Dong said in the document.
In order to make the sales more attractive toinvestors, in November 2017, VNR proposed its divestment plans to the Ministryof Transport, including starting prices and offering methods.
Under the plan, VNR will offer shares inpackages for bidding on the Hanoi Stock Exchange and financial institutions,seeking to sell the remaining shares in the nine companies in which it hadpreviously sold part of its ownership.
VNR will sell shares of the four firms that aretraded on the stock market at market prices at the correct times. Also, theState-run railway corporation will offer shares of the two stone miningcompanies for sale on the Hanoi Stock Exchange.
To declare the starting prices of the sale, VNRproposed that the Ministry of Transport allow it to use the share pricevaluations conducted by financial institutions.
According to Dong, the divestment plans werealso sent to the ministries of Finance and Planning and Investment to collectfeedback.
In response, the Ministry of Planning andInvestment said the plans may work well for the four companies trading on thestock market, and for Dong Mo and My Trang stone miners, as they comply withthe Government’s Decree 91/2015/NĐ-CP dated October 13, 2015 on management ofState capital in businesses.
However, the planning and investment ministryraised some concerns over the divestment plans for the four companies in whichVNR planned to sell shares on the Unlisted Public Company Market (UPCoM), asthe market prices of the shares were lower than the face values.-VNA
