VietNamNet Bridge – The Vietnam National Petroleum Corporation (Petrolimex) will sell 8% stake to JX Nippon Oil and Energy of Japan for the price of not less than VND38,000 ($1.8) per share to have money to restructure its loss-making subsidiary in Singapore.

The voting card of Petrolimex shareholders at the 2016 shareholders' meeting.

The information was released at the Petrolimex annual shareholders' meeting 2016 on March 30.

Petrolimex Chairman Bui Ngoc Bao said the group will sell 103.5 million common shares to the Japanese partner in the first phase, at the price of not less than VND38,000 per share.

At this price, Petrolimex will earn at least VND3,934 billion (nearly $180 million). Thus, the Japanese partners will hold 8% capital of the group.

After this phase, JX will have the right to purchase over 155 million redeemable preference shares. These shares do not give them the right to vote or election to the Board of Directors.

Bao said the deal with JX had been negotiated in nearly two years. Initially Petrolimex planned to sell 20% stake to JX but because of market problems it had to reduce the rate to 8%.

After holding 8% of the capital, JX will have its representative - Mr. Hitoshi Kato - Vice President of Business Development in Southeast Asia in the Petrolimex Board of Directors.

According to the report of the Board of Directors, after the deal with JX completes, the capital will be used to save Petrolimex’s subsidiary in Singapore, which incurred heavy losses worth hundreds of million USD.

JX Nippon Oil & Energy was founded in 2010, based in Tokyo, operating in the field of oil refining, oil and petroleum product trading, import and trading of gas and coal.

Petrolimex is the seller of more than half of the petroleum products of Vietnam. JX will support Petrolimex in petrol station management and billing system.

Son Tung