|Transactions at a branch of the An Binh Bank, a subsidiary of Electricity of Viet Nam (EVN). EVN will divest capital from this affiliate in 2015. — VNS Photo Truong Vi
HA NOI (VNS)— The Electricity of Viet Nam (EVN) successfully divested almost VND1 trillion (US$46.7 million) from non-core businesses in 2014, according to the company's deputy general director, Dinh Quang Tri.
At the Ministry of Industry and Trade's meeting this week, Tri said EVN sold its entire stakes in two real estate companies, Saigon Vina Land Co and Central Power Real Estate Co.
A week ago, EVN also auctioned 62.5 million shares in EVN Finance Joint Stock Co, equivalent to 25 per cent of its stakes, on the Ha Noi Stock Exchange. Tri said around 58 million shares were sold, and they collected VND600 billion ($28 million).
"We will continue to sell stakes here," Tri said.
EVN is the biggest stakeholder in EVN Finance, the second largest finance company in Viet Nam, with holdings of 100 million shares, equivalent to 40 per cent of EVN Finance's total capital.
An August Government decree barred EVN from investing in non-core businesses, such as banking, finance, securities, insurance, investment funds and real estate.
Early this year, EVN deputy general director Duong Quang Thanh announced that by 2015 the company would divest capital from seven subsidiaries: EVN Finance, An Binh Bank, An Binh Securities Co, Global Insurance Co, Saigon Vina Land Co, the Central Power Real Estate Co, and Viet Nam Investment and Power Construction Co.
EVN is now waiting for approval so it can sell its stakes in other companies.
It is holding nearly 77 million shares in An Binh Bank (ABBank), equivalent to over 16 per cent of the bank's capital worth over VND100 billion ($4.7 million). The company plans to auction all its stakes, but is awaiting the central bank's directions. The company is expected to completely divest from the bank this year.
With regard to its stakes in Global Insurance Co, EVN sold 1 million shares, or 2.5 per cent, to International ERGO in 2013. EVN now owns 20 per cent of the insurance company. EVN has submitted the divestment plan to the Ministry of Industry and Trade and will sell all its stakes by 2015.
According to the ministry's latest report, EVN's total profit in 2013, including affiliates and subsidiaries, reached more than VND4.938 trillion ($230.8 million). The company estimated that EVN itself would gain almost VND300 billion ($14 million) in 2014. — VNS