|Goods are loaded on board at Nghe Tinh Port in central Nghe An province. Tuan Loc Investment and Construction JSC has purchased 51 per cent of the port from Vinalines. — VNA/VNS Photo Lan Xuan
HA NOI (VNS)— Tuan Loc Investment and Construction JSC has purchased 51 per cent of the Nghe Tinh Port in Nghe An Province from Vietnam National Shipping Lines (Vinalines).
Local media reported that the company, which already held an 18.1 per cent stake in the port, was referenced by Vinalines as a suitable investor for the whole package of shares in a document sent by Chairman of the People's Committee of Nghe An Nguyen Xuan Duong to the Ministry of Transport last month.
Earlier, Prime Minister Nguyen Tan Dung had allowed Vinalines to divest the whole package of nearly 11 million shares, or 51 per cent of the stake, in the port.
So far, Nghe Tinh Port is a national general port acting as the main hub in the central areas, including the Cua Lo and Ben Thuy ports. The Nghe Tinh Port, covering 230,000sq.m of storage space, was the largest port in northwestern Viet Nam, located 12 km from Cua Hoi Beach and spanning well into the northeast, east of Vinh City.
In particular, Cua Lo Port, which is a Type 1 seaport located along the international maritime route, connects the province with the central northern provinces and Laos.
Cua Lo Port has 6 terminals, including 4 active terminals that were designed for vessels with a capacity of 10,000 tonnes. Terminals 5 and 6, which were constructed by Tuan Loc, were designed for vessels with a capacity of 30,000 tonnes.
According to the Dau Tu (Investment) newspaper, Vinalines has also completed a divestment plan for Nghe Tinh Port JSC, wherein it will sell the whole package of shares in a lot. The plan was said to be awaiting the MoT's approval.
Under the plan, investors must have minimum equity capital of VND500 billion (USVND498,372 million), with no accumulated losses. The investor must commit to buying all the shares of other shareholders (if required by these shareholders) after purchasing the shares of Vinalines. At the same time, investors must maintain and develop the core business of the port.
If the deal had been struck, Vinalines would have received at least VND110 billion (VND109,508 million) to serve its own financial restructuring efforts. Nghe Tinh Port has charter capital of VND215.2 billion (VND214,546 million).
So far, Tuan Loc JSC, with charter capital of VND1.6 trillion (VND1,593,448 million), was expected to meet the conditions to seal the deal. Established in 2005, it has expanded its operations in the construction industry across Viet Nam. In Nghe An Province, it was charged with constructing water plants for Vinh City, as well as the infrastructure of the industrial zone in Dong Nam Economic Zone and Terminals 5 and 6 of Cua Lo Port, with a total investment of VND1.4 trillion (VND1,394,546 million).
Previously, Tuan Loc JSC had also struck a deal with the MoT to buy a stake in the Civil Engineering Construction Corporation 4 JSC (CIENCO4), which is one of the leaders in road construction in Viet Nam, with annual sales of more than VND10 trillion (VND9,971,901 million). Currently, it holds a 51.5 per cent stake in CIENCO4.
Shares of Nghe Tinh Port (NAP) have been traded in the UPCoM market in the northern bourse since last October. The port is expected to officially list its shares this June after the deal is completed. — VNS