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Vietnam Today

PM approves Vinalines' equitization plan

Released at: 18:49, 22/06/2018

PM approves Vinalines' equitization plan

Photo: Vinalines

State to retain 65% with additional shares issued to bring charter capital to $614 million.

by My Van

Prime Minister Nguyen Xuan Phuc has approved the equitization plan of the Vietnam National Shipping Lines (Vinalines).

Equitization will involve the sale of part of State capital and the issuance of additional shares to increase charter capital, which is to exceed VND14.04 trillion ($613.9 million) post-equitization.

The total number of shares issued is to be 1,404,605,800, with a par value of VND10,000 ($0.43) per share. The State will hold 912,993,770 shares, or 65 per cent of charter capital, while preferred shares for employees at its subsidiaries will total 2,293,900 shares, representing 0.16 per cent.

Preferred shares sold to trade union organizations is to be 500,000, representing 0.04 per cent of charter capital, shares sold to strategic investors is to be 207,896,970, representing 14.8 per cent, and shares auctioned will total 280,921,160, representing 20 per cent of charter capital.

The total number of employees at the time of valuation was 1,415, while the total number to be transferred to the joint stock company is 1,096.

The representative of State capital in Vinalines is the Ministry of Transport. In order to implement the decision, the Prime Minister has assigned the ministry to direct Vinalines to organize and sell shares to the public, carry out the registration and deposit of shares winning at auction at the Vietnam Securities Depository Center, and register for trading on the stock exchange.

The first sale of shares to the public will be conducted by auction at the Hanoi Stock Exchange (HNX).

It will pay land rentals or exchange land use rights in accordance with the law.

By 2020, Vinalines expects to maintain the leading position of Vietnam’s maritime industry in the field of seaports, shipping and maritime services. By 2030 it is expected to become a branded enterprise in the region with high competitiveness and market share, contributing to Vietnam becoming one of the region’s maritime centers.

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