The State Capital Investment Corporation (SCIC) is likely to divest from FPT Telecom early next year, a Ministry of Finance official said

Dang Quyet Tien, deputy director of the ministry’s Corporate Finance Department, told dantri.com.vn recently that the move is part of the SCIC’s efforts to withdraw capital from several major enterprises in early 2017.

The SCIC will sell its entire 50.16 percent stake in the telecommunications firm, which registered charter capital of more than 1.37 trillion VND (61.99 million USD) with the Vietnam Securities Depository.

The depository certified FPT Telecom as listing about 1.37 million shares, coded FOX with a face value of 10,000 VND each, on the Unlisted Public Company Market earlier this month.

FPT Telecom’s third-quarter financial report said the company earned 4.92 trillion VND in net revenue from sale of goods and services in the first nine months of this year, up 20 percent over the same period last year.

The firm earned 848.46 billion VND in pre-tax profit in the nine months, a year-on-year increase of 5 percent.

According to Thoi bao Kinh te Viet Nam (Vietnam Economic Times), FPT Telecom has paid dividends in cash at a rate of 40 percent every year – a “golden” level in the local market.

FPT Telecom also contributed about 40 percent to the annual profit of its parent firm – technology giant FPT, which holds a 45.64 percent stake in the subsidiary.

Earlier this year, the Government urged the SCIC to withdraw capital from 10 major businesses, including FPT Telecom, Bao Minh Insurance Corporation, Vietnam Infrastructure Investment & Development JSC, Ha Giang Mineral Mechanics JSC, and Vietnam Dairy Products JSC (Vinamilk).

The remaining five are Vietnam National Reinsurance Corporation, Tien Phong Plastic JSC, Binh Minh Plastic JSC, Sa Giang Import Export Corporation and FPT.

The SCIC recently auctioned a 9 percent stake of Vinamilk on the HCM City Stock Exchange. It sold a stake of 5.4 percent to foreign investors, gaining more than 11.28 trillion.

VNA