A view of Bình Sơn Refining and Petrochemical Co Ltd (BSR). The company is willing to sell up to 49 per cent of its capital to a foreign strategic investor during its equitisation, which is reportedly appealing to major global energy companies. — Photo vietnamnet.vn
HÀ NỘI — Bình Sơn Refining and Petrochemical Co Ltd (BSR) is willing to sell up to 49 per cent of its capital to a foreign strategic investor during its equitisation, which is reportedly appealing to major global energy companies.
Bình Sơn Refining and Petrochemical is the wholly-owned subsidiary of Vietnam National Oil and Gas Group (PVN) and the operator of the $3-billion Dung Quất Oil Refinery, the first oil refinery in Việt Nam.
The petrochemical company plans for its initial public offering by the end of 2017, one year late compared with its earlier target of the end of 2016, due to complexity in evaluating the company.
BSR general director Trần Ngọc Nguyên said the firm was inviting advisors to decide the corporate value.
“The schedule for equitisation is aligning with the Government’s nod for Bình Sơn’s IPO plan,” Nguyên said, adding that the most important work now is to seek strategic investors.
He said the company was working with some top global energy firms that had expressed interest in Bình Sơn’s equitisation, such as Russia’s Rosneft and Gazprom Neft, Thailand’s PTT and one U.S. firm.
“A strategic investor can buy up to 49 per cent stake in the company. If they want to buy more, we will have to report to the Government,” Nguyên said.
He believes the Government’s recent permission for Bình Sơn’s self-regulated price mechanism would help attract investors.
Early this month, the Government allowed Bình Sơn to make its own price mechanism for Dung Quất’s petrol products after the company repeatedly called for support to improve competitiveness.
Dung Quất’s current petrol is often more expensive than imported products due to higher import taxes imposed on their products compared with enterprises which benefit from import tariff incentives under free trade agreements Việt Nam has signed.
“Self-regulated price mechanism will increase the competitiveness of company products and then make it appealing to investors,” Nguyên said. – VNS