SCIC, Viettel sell their stakes in Vinaconex
The State Capital Investment Corporation (SCIC) sold its complete ownership in the Vietnam Construction and Import-Export JSC (Vinaconex) for VND7.36 trillion (US$327.4 million) on November 22.
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SCIC sold all of its more than 254.9 million shares for VND28,900 (US$1.28) per share.
The successful bid price for Vinaconex shares was 35.7% higher than the starting bid price of VND21,300 per share set for the auction.
SCIC had earlier expected it would receive at least VND5.43 trillion from the November 22 deal.
Vinaconex is listing more than 441.7 million shares on the Hanoi Stock Exchange with code VCG.
The company shares closed the November 22 session flat at VND18,500 per share.
SCIC had tried to offload 96.3 million Vinaconex shares in December 2017 but could only sell 5.3 million shares. The deal was considered “unsuccessful” to market analysts.
Meanwhile, the military telecommunication group Viettel also offloaded its 94 million Vinaconex shares for VND2 trillion on November 22.
Viettel had earlier expected it would earn some VND2 trillion from the deal.
Vinaconex owns and manages 3.2 million square metres of land, covering its 16 construction projects. Of the total land area, the company is renting three million square metres of land to construct seven projects.
The largest project, covering 2.7 million square metres, is located at the Hoa Lac Hi-Tech Park in Hanoi.
Other large projects included the Bac An Khanh Urban Area (Splendora) in Hanoi’s Hoai Duc district and two buildings with investment capital of VND1.25 trillion.
Vinaconex is also repairing some downgraded apartment buildings on Hanoi’s Lang Ha street, which costs the firm total VND1.56 trillion.
The company had announced it would lock the foreign ownership cap at zero percent. According to the company’s management board, the firm had operated in labour and drug export sectors, in which foreign capital is now allowed.
In the third quarter of 2018, Vinaconex recorded VND2.22 trillion in net revenue, down 8.7% year on year, and VND185.4 billion in post-tax profit, a yearly decline of 29%.
After nine months, the company’s post-tax profit fell 40% year on year to VND368 billion. The value of total asset reached more than VND20 trillion and its total loan was VND4 trillion.
