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VietNamNews

Construction firms step up privatisation

Update: July, 06/2015 - 09:45

The construction sector is expected to announce business value in the third quarter. The ministry will submit privatisation plans to the Prime Minister in the last quarter of the year for approval.. — Illustrative image/ Photo baogiaothong

HA NOI (VNS) — The privatisation of businesses in the construction sector has been accelerated to complete the target for equitising its 19 firms nationwide.

In the first half of the year, the Ministry of Construction established a steering committee on privatisation for approving plans, clarifying business value, and spending for works at each company.

Viet Nam Construction and Import-Export Corporation and the Infrastructure Development and Construction Corporation (Licogi) sold out all their shares at initial public offering (IPO). Licogi has negotiated to sell shares to strategic shareholders and labourers.

The ministry also submitted a privatisation plan for Viet Nam Machinery Erection Corporation. It has completed the announcement of business value, as well as the privatisation plan for Construction Corporation No.1 (CC1) and Construction Material Corporation No.1.

Accordingly, CC1 will be converted into a joint stock company by the end of this year. The corporation will issue 110 million shares, with the starting price at VND10,000 each. The government will hold 44 million shares; 413,500 shares will be distributed to the corporation's labourers for preferential prices; 49.5 million shares will be sold to strategic investors, and 14 million shares will be sold at IPO.

Tuan Loc Construction Investment Company and Top American Viet Nam want to be CC1's strategic investors by buying 41.8 million and 7.7 million shares, respectively.

In addition, several businesses in the sector have been carrying out business value assessments for their privatisation. These include Construction Machinery Corporation, Khanh Hoa Housing Development Company, Viet Nam Construction Consultant Corporation, Song Da Corporation, as well as Housing and Urban Development Corporation and Viet Nam Cement Corporation.

The construction sector is expected to announce business value in the third quarter. The ministry will submit privatisation plans to the Prime Minister in the last quarter of the year for approval.

The ministry also plans to divest from non-core businesses at State-owned enterprises, with a total value of VND5.25 trillion (US$243 million). — VNS

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