Việt Nam News

Gas tanks produced at PV Gas South. — Photo pvgas.com.vn

HÀ NỘI — PetroVietnam Gas Corporation JSC (PV Gas) has decided it would sell its stake in the Southern Gas Trading JSC (PV Gas South).

PV Gas is now the biggest shareholder at the Southern Gas Trading with a 35.26 per cent stake.

Southern Gas Trading is listing 50 million shares on the Hà Nội Stock Exchange (HNX) with code PGS.

PGS soared 5.3 per cent to end Monday at VNĐ15,900 apiece following the news. At that price, the stake of PV Gas at the Southern Gas Trading JSC is worth VNĐ280 billion.

The company’s share price has fallen nearly a half from its one-year high of VNĐ32,000 apiece reached in October 2019.

PV Gas shares, listed on the Hồ Chí Minh Stock Exchange as GAS, edged up 0.8 per cent to VNĐ72,500 apiece at the end of Monday.

PV Gas’ divestment plant was determined after the company previously failed to increase its stake in the Southern Gas Trading JSC.

In October 2019, PGS planned to sell 16.1 million shares for VNĐ23,409 per share, valuing the deal at VNĐ377 billion, to PV Gas to raise funding for its production and trading activities.

If the deal had been done, PV Gas would have upped its ownership in the Southern Gas Trading to 51.03 per cent or 33.7 million shares.

PV Gas then could have been the parent company. But the deal was rejected by the Southern Gas Trading’s shareholders at the annual meeting on October 29, 2019.

PGS sells liquefied and compressed natural gas (LPG and CNG). The company takes a 35 per cent market share in selling LPG in the South and Southern Central Region.

The company has recently acquired the Việt Nam Gas Tank Co, which now produces a total of 379,000 tanks a year.

PGS also supplies CNG for the southern region with a wide range of customers working in different sectors, including materials and consumer segments.

In 2019, PV Gas South earned a total VNĐ6.38 trillion worth of revenue, fulfilling 97 per cent of the year’s plan. Pre-tax profit in 2019 was VNĐ93 billion, equal to 90 per cent of the year’s plan.

In the first half of 2020, the spread of coronavirus around the globe made PV Gas South suffer a post-tax loss of VNĐ20 billion. — VNS

Tags PV Gas selling stakes assets stocks divestment

VN's food processing industry struggles to improve quality and value chain integration

Economy

Aviation stocks waiting for takeoff as businesses soar

Economy

Monetary policy forecast unlikely to loosen further

Economy

PM attends Dominican Republic-Việt Nam business dialogue in Santo Domingo

Economy

New decree on using telecommunications accounts for payment proposed

Economy

Việt Nam resolved to boost digital economy with national action plan

More on this story

Economy

Bắc Ninh targets 2,500 new enterprises a year

The northern province of Bắc Ninh has set a target of registering 2,500 new enterprises each year from 2020 to 2025 as part of a scheme to support small and medium-sized enterprises (SMEs).

Economy

Braving challenges to revive the economy: In danger lies opportunity

Braving difficulties, Việt Nam's GDP growth can reach 2-3 per cent in 2020 but amid an uncertain recovery path, enterprises are much in need of the Government's support and continued structural reforms to ensure sustainable growth.

Economy

First Vietnamese bank allows transactions in South Korea for local card holders

TPBank has become the first bank in Việt Nam to allow all domestic cardholders to make payment and withdrawal transactions in South Korea in addition to international debit cards or credit cards.

Economy

Quảng Ninh aims for processing and manufacturing industry to be key pillar

The northern coastal province of Quảng Ninh has targeted to make the processing and manufacturing industry become one of the main pillars of the province’s industry.

Economy

Credit growth expected to accelerate in final quarter

The central bank’s updates late last week showed credit had expanded 6.09 per cent in the first nine months of this year compared with the end of 2019.

Economy

Showrooms opened to promote local OCOP products

The capital city of Hà Nội has selected several locations for the introduction and sale of goods under the “One Commune, One Product” (OCOP) programme.

Economy

Covid-19 offers Việt Nam opportunity to boost exports to Latin America

Mercosur countries, comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela, could be a potentially lucrative market for Vietnamese exports such as textile and garment, footwear, handicrafts, and processed foods amid the disruption of many traditional supply chains due to the Covid-19 pandemic, an online conference between Việt Nam and the South American bloc heard on October 1.