EVN to sell stake in its finance subsidiary
The Hanoi Stock Exchange (HNX) has announced that the Electricity of Vietnam (EVN) Group will auction 15% of its stake, equivalent to 37.5 million shares, in the EVN Finance Joint Stock Company.
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The shares will be sold at starting price of VND14,133 (US$61 cents). EVN can earn a minimum of VND530 billion through the auction.
EVN Finance currently has chartered capital of VND2.5 trillion and owns the maximum capital among operating financial firms.
The time to register and receive deposits is from now until August 11, 2017, and time for submitting the auction participation slip is until August 16, 2017.
The public auction will take place on August 18, 2017.
Under the master plan on restructuring enterprises under EVN in the 2017-20 period, EVN will have to divest its capital in enterprises, including EVN Finance Joint Stock Company, Thu Duc Electro Mechanical Joint Stock Company, Dong Anh Electrical Equipment Corporation-Joint Stock Company and Thuan Binh Wind Power Joint Stock Company, as well as Power Engineering Consulting Joint Stock Company 3 and Power Engineering Consulting Joint Stock Company 4.
According to the financial report of EVN Finance, in the first quarter of 2017, the total assets of the company were over VND19 trillion but total debt was more than VND16 trillion, accounting for 80%. This result is a negative sign of the company’s financial imbalance.
Currently, EVN Finance’s chartered capital is divided among EVN with 15%, An Binh Commercial Joint Stock Bank 8.4%, Mechanics Electrical Refrigeration Joint Stock Company 1.8% and the remaining 74.8% belonging to other shareholders.
In 2016, EVN planned to divest 15% of capital in EVN Finance but the plan failed.
