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Tín Thành Group to buy BSR stake

Update: November, 11/2017 - 09:00
Renewable energy firm Tín Thành Group has expressed a desire to become a strategic partner of Bình Sơn Refinery and Petrochemical Company Limited (BSR).— Photo vneconomy

HÀ NỘI — Renewable energy firm Tín Thành Group has expressed a desire to become a strategic partner of Bình Sơn Refinery and Petrochemical Company Limited (BSR).

“Tín Thành Group plans to buy a 5 per cent of stake in BSR in 2017,” BSR said on its website. The deal would cost the energy firm around VNĐ3.6 trillion.

In addition, “Tín Thành Group and BSR will propose the Prime Minister allow the energy firm to buy up to 55 per cent of its stake,” BSR added.

In May, Trần Anh Tuấn, the industry and trade minister, signed a decision that valued BSR at US$3.2 billion, or roughly VNĐ72.88 trillion.

Therefore, Tín Thành Group would have to spend around VNĐ39.6 trillion or $1.76 billion to purchase 55 per cent of BSR shares.

Representatives of Tín Thành Group were not available to comment on the deal.

The company is headquartered in Tân Bình District, HCM City, and it was founded in 1992, focusing on energy, hi-tech agriculture and environment solutions.

Tín Thành Group has VNĐ200 billion in charter capital, which was raised from VNĐ108 billion on January 3. The biggest shareholder is Nguyễn Đình Quyền with 80 per cent ownership, followed by Nguyễn Thị Thanh Hiền who holds 20 per cent, cafef.vn reported.

According to BSR, Tín Thành Group will work to come up with the final contract in November and participate in BSR’s expansion plan.

“Tín Thành Group will work as a middle company between BSR and US-based refineries and complete the development of projects before December 31,” BSR said.

BSR IPO delayed until January 2018

The initial public offering (IPO) of Bình Sơn Refinery and Petrochemical Co. Ltd. has been delayed until January 2018 instead of opening on Tuesday.

The company’s Chief Executive Officer, Trần Ngọc Nguyên, told Reuters on Monday that Việt Nam’s biggest oil and gas refinery firm planned to sell more than the original of 4 per cent of shares.

BSR expected to raise about $80 million from selling that 4 per cent stake, Nguyên said, without revealing further information about the coming plan.

The State-owned refinery business has delayed its IPO several times with the latest having been scheduled in November.

In the previous plan, BSR planned to raise nearly VNĐ2 trillion from selling a 5-6 per cent stake in IPO and offload 49 per cent of capital to the strategic investor 12 months later to reduce the State’s ownership to below 50 per cent.

In the first nine months of 2017, BSR reported VNĐ55 trillion in revenue and VNĐ5.46 trillion in post-tax profit. — VNS

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