Sông Đà Corp to divest from hydroelectricity companies

Update: September, 07/2017 - 10:55
Sông Đà Corporation plans to sell shares at several hydropower plants next month, includign Nậm Mức and Hồ Bốn. - VNA/VNS Photo
Viet Nam News

HÀ NỘI – Construction giant Sông Đà Corporation announced recently that it would be selling its stakes in several hydroelectricity companies in October.

Sông Đà, which holds a stake of 0.92 per cent in Hồ Bốn Hydroelectricity Joint Stock Company, plans to sell its 216,000 shares at an initial price of VNĐ10,400 (US$0.45) per share. The auction will be held on October 3 at the Hà Nội Stock Exchange. Hồ Bốn has a charter capital of VNĐ235.4 billion.

On the same day, Sông Đà will also put on auction its entire 558,000 shares, or 1.3 per cent stake, in Nậm Mức Hydroelectricity at an initial price of VNĐ10,300 per share.

Founded in 2007, Nậm Mức was connected to the national grid in 2015, and its revenue has jumped from VNĐ98 billion in 2015 to VNĐ155.5 billion in 2017. However, the company reported a loss of VNĐ5.4 billion in 2016 and is forecast to incur a loss of VNĐ4.25 billion this year.

Previously, Sông Đà was planning to sell 16.27 million shares of Hương Sơn Hydroelectricity, but the divestment process has not been completed.

The corporation is also divesting from the Southern Power Investment and Development Joint Stock Company (SEB). Currently, it owns 1.21 million SEB shares, or 6.06 per cent of the company’s charter capital.

In July, the Prime Minister approved the equitisation plan for Sông Đà Corporation, allowing it to sell parts of State-owned capital and issue shares to increase its charter capital to VNĐ4.5 trillion.

Accordingly, Sông Đà will launch its initial public offering (IPO) of 450 million shares at VNĐ10,000 per share, with the state retaining 229.5 million shares, or 51 per cent of the charter capital, until the end of 2019. The State capital will be reduced to below 50 per cent of the charter capital in 2020. – VNS