SCIC to sell stakes in 121 firms for after-tax profit

Thursday, 2018-05-10 21:48:39
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SCIC has said it would offload capital in 121 businesses in 2018.
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NDO/VNA – The State Capital Investment Corporation (SCIC) said it would offload capital in 121 businesses in 2018 with a view to making after-tax profit of VND5.4 trillion (US$237.8 million), a 17% year-on-year decrease.

The corporation has set a reduction in both revenue and after-tax profit. Accordingly, its revenue target this year is VND7.9 trillion (US$348 million), up 5.9% from 2017.

SCIC has successfully sold 30% of capital at Binh Minh Plastic Joint Stock Company to Thailand’s Nawaplastic Industries to earn VND2.3 trillion (US$101.3 million). Nawaplastic Industries increased its shares to 51% of total capital at Binh Minh Plastic JSC.

SCIC plans to offload its stakes at Thieu nien Tien Phong Plastic Joint Stock Company, FPT Joint Stock Company and Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) again this year after a failure in 2017.

Maritime Bank has the largest charter capital in SCIC’s list of selling shares this year with VND11.7 trillion (US$515.4 million). The divestment at the bank was unsuccessful as no investor registered within the deadline of March 21.

Many large companies in the thermo-power sector will also be part of SCIC’s divestment plan, such as Quang Ninh Thermo-power Joint Stock Company and Hai Phong Thermo-power Joint Stock Company. The two companies have charter capital of VND4.5 trillion (US$198.2 million) and VND5 trillion (US$220.2 million), respectively.

Other major names in the divestment include Domesco Medical Import Export JSC, Bao Viet Group, Thang Long Corporation and Vietnam Vegetable Oil Industry Corporation.

Notably, the list of divestment this year does not have Vietnam Dairy Product Joint Stock Company, Hau Giang Pharmaceutical Joint Stock Company and Vietnam Military Joint Stock Commercial Bank. SCIC holds shares of 36%, 43% and 9.7% in these three companies, respectively.

It will sell shares at Vietnam Dairy Product JSC following orders from the government.

Established in 2006, SCIC operates with two main functions: representing the government’s capital interests in State-owned enterprises and investing in State capital in key sectors and essential industries.