State capital divestment at PV Oil put on hold

04-Jul-2018 Intellasia | The Saigon Times | 6:02 AM Print This Post

PetroVietnam Oil Corporation (PV Oil), a major fuel trading arm of the Vietnam National Oil and Gas Group (PVN), announced on June 28 its decision to suspend the divestment of State capital until the corporation completes its conversion into a joint stock company (JSC).

The suspension follows the prime minister’s decision stated in a document released at the end of May.

PV Oil has informed four investors and enterprises, which have confirmed their continued involvement in the divestment, of the government’s decision and a plan to call on these firms to support PV Oil after its equitisation.

On January 25 this year, PV Oil launched its long-awaited initial public offering, selling 206.8 million shares to 1,333 individuals and 45 organisations at home and abroad. The government fetched more than VND4.17 trillion (US$182 million) from the sale.

PV Oil has sought to sell stakes to strategic investors and has attracted four firms.

The corporation said it needed four additional months for share auctions. However, its proposal was rejected by the government despite the support of the Ministries of Industry and Trade, Planning and Investment and Justice and Finance.

PV Oil will start preparing for its first shareholders’ meeting, scheduled early next month, and will turn the State-owned corporation into a joint-stock concern. The corporation will then propose its State capital divestment plan to the government and relevant agencies again.

On March 7, PV Oil listed 200 million shares on the Market for Unlisted Public Companies on the Hanoi Stock Exchange.

According to its approved equitisation plan, PV Oil would offer up to 462.5 million shares, or 44.72 percent of its charter capital, to strategic investors. After the equitisation, PVN will hold 35.1 percent of PV Oil’s capital.


Category: Stocks, Vietnam

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