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SCIC to divest from FPT Telecom in early 2017

Update: December, 16/2016 - 09:41
The State Capital Investment Corporation (SCIC) is likely to divest from FPT Telecom early next year, a Ministry of Finance official said. — Photo FPT Telecom

HÀ NỘI — The State Capital Investment Corporation (SCIC) is likely to divest from FPT Telecom early next year, a Ministry of Finance official said.

Đặng Quyết Tiến, deputy director of the ministry’s Corporate Finance Department, told dantri.com.vn recently that the move is part of the SCIC’s efforts to withdraw capital from several major enterprises in early 2017.

The SCIC will sell its entire 50.16 per cent stake in the telecommunications firm, which registered charter capital of more than VNĐ1.37 trillion (US$61.99 million) with the Việt Nam Securities Depository.

The depository certified FPT Telecom as listing about 1.37 million shares, coded FOX with a face value of VNĐ10,000 each, on the Unlisted Public Company Market earlier this month.

FPT Telecom’s third-quarter financial report said the company earned VNĐ4.92 trillion in net revenue from sale of goods and services in the first nine months of this year, up 20 per cent over the same period last year.

The firm earned VNĐ848.46 billion in pre-tax profit in the nine months, a year-on-year increase of 5 per cent.

According to Thời báo Kinh tế Việt Nam (Vietnam Economic Times), FPT Telecom has paid dividends in cash at a rate of 40 per cent every year – a “golden” level in the local market.

FPT Telecom also contributed about 40 per cent to the annual profit of its parent firm – technology giant FPT, which holds a 45.64 per cent stake in the subsidiary.

Earlier this year, the Government urged the SCIC to withdraw capital from 10 major businesses, including FPT Telecom, Bảo Minh Insurance Corporation, Việt Nam Infrastructure Investment & Development JSC, Hà Giang Mineral Mechanics JSC, and Việt Nam Dairy Products JSC (Vinamilk).

The remaining five are Việt Nam National Reinsurance Corporation, Tiền Phong Plastic JSC, Bình Minh Plastic JSC, Sa Giang Import Export Corporation and FPT.

The SCIC auctioned a 9 per cent stake of Vinamilk on the HCM City Stock Exchange on Monday. It sold a stake of 5.4 per cent to foreign investors, gaining more than VNĐ11.28 trillion. — VNS

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