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PM greenlights equitisation of Vinacomin power unit

Update: January, 21/2015 - 08:28

The corporation has a charter capital of VND6.8 trillion (US$319.2 million). It will sell 680 million shares in the first initial public offering (IPO) at VND10,000 ($0.46) per share. — VNA/VNS Photo Trong Dat

HA NOI (VNS) — Prime Minister Nguyen Tan Dung has approved the equitisation of the Viet Nam National Coal and Mineral Industries Holding Corporation (Vinacomin)'s Electricity Corporation.

Accordingly, the Vinacomin Electricity Corporation will operate as a equitised entity and retain existing rights, duties and legal benefits as well as business activities.

The PM's decision says that the equitisation process will include the sale of State-owned capital and the issue of shares to increase the charter capital.

The corporation has a charter capital of VND6.8 trillion (US$319.2 million). It will sell 680 million shares in the first initial public offering (IPO) at VND10,000 ($0.46) per share.

The State will continue to hold 442 million shares, accounting for 65 per cent of the total charter capital. More than 1.6 million shares will be sold at a preferential price to workers, accounting for 0.24 per cent of the total, while more than 236.3 million shares, or 35 per cent of the charter capital, will be auctioned.

The PM authorises the minister of industry and trade to guide Vinacomin in deciding the initial price as well as choosing the intermediary financial organisations and stock exchange to implement the IPO. The corporation's share was set to be listed on the stock market according to the current regulations.

Vinacomin will continue to hold the State-owned capital at the corporation.

All 1,522 employees will continue to work in the newly privatised corporation.

Vinacomin's Deputy General Director Nguyen Van Bien affirmed that following the Prime Ministerial Decision 314/QD-TTg, dated February 7, 2013, which approved the group's restructuring project for the 2012-15 period, Vinacomin has promoted the equitisation of some member companies as per schedule.

Of the six member units that were equitised in 2014, three units, including the Mineral Corporation, the Electricity Corporation and the Viet Bac Mining Industry Corporation, had more than VND500 billion ($2.38 million) in charter capital. — VNS

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