EVN to slash $98m from non-core ops
|Electricity of Viet Nam (EVN) plans to withdraw capital worth VND2.07 trillion (US$97.64 million) from seven non-core companies by 2015.— Photo vietstock
HA NOI (VNS)— Electricity of Viet Nam (EVN) plans to withdraw capital worth VND2.07 trillion (US$97.64 million) from seven non-core companies by 2015.
The withdrawal, a part of its master restructuring plan, will ensure that EVN concentrates on its core business of power production and trading to better serve society and the economy.
The targeted companies include An Binh Bank (ABBank), An Binh Securities (ABS), Global Insurance Corporation (GIC), and Sai Gon Vina Real Estate Company (Land Sai Gon).
The Central Power Real Estate Joint Stock Company (Land Mien Trung) and Viet Nam Investment and Power Construction Company (EVNIC) will also be affected.
At ABS, Land Sai Gon and Land Mien Trung, the capital withdrawal process will be conducted through public auctions in which the starting prices will not be lower than the face values and the book values of the companies.
The corporation also plans to withdraw VND625 billion ($29.45 million) from its subsidiary EVN Finance Company (EVNFinance) to reduce its stake from 40 per cent to 15 per cent.
This is in accordance with the Law on Credit Institutions that restricts the maximum shareholding of an institutional investor at 15 per cent of the charter capital.
In 2013, EVN had withdrawn about VND252 billion ($12 million) from An Binh Bank and VND26 billion ($1.22 million) from GIC.
The pressure at EVN to de-invest in non-core business is rising due to an array of financial and managerial problems at the corporation.
Last October, the Government Inspectorate announced that by the end of 2011, EVN's non-core investments reached VND121 trillion ($5.76 billion) and surpassed its charter capital of almost VND77 trillion ($3.7 billion).
According to the government authority, this was a violation of the regulations passed by the Ministry of Finance, and, despite the large non-core investments, EVN reported losses of VND2.2 trillion ($104.7 million). — VNS