The parent company of Vietnam National Shipping Lines (Vinalines) has forecasted losses of up to VND1.14 trillion (USD51 million) in the first half of this year.

By late 2017, the parent company of Vinalines owned 19 affiliates, including 10 firms specialising in seaport operations 

The equitisation plan of its parent company had been submitted to Prime Minister Nguyen Xuan Phuc following approval by the Ministry of Transport and the equitisation was expected to be started in September this year. 

Under the plan, the state will hold 65% of the charter capital, equal to over 910 million shares. Some 208 million shares will be sold to strategic investors, equivalent to 14.8% of the charter capital, nearly 2.3 million shares, equivalent to 0.16% of the charter capital will be sold to employees, and the trade unions will be offered shares equivalent to 0.04% of the charter capital.

Between January and June this year, the parent company of Vinalines expects to earn revenues of VND533.8 billion, making a loss of VND1.14 trillion.

However, the company hopes to make profits of VND143.9 billion in the second half of this year. The profits are expected to increase to VND177.2 billion in 2019 and VND223.5 billion by 2020.

By late December last year, the parent company of Vinalines owned 19 affiliates, including 10 firms specialising in seaport operations.

After completing equitisation, Vinalines will have charter capital of over VND14 trillion (USD612.5 million), including state capital of nearly VND12 trillion. For stake value of VND10,000 per share, Vinalines will offer 1.4 billion shares in the coming initial public offering.

Foreign investors keen on Vinalines’ equitization

Many foreign enterprises have expressed interest in becoming strategic investors in Vietnam National Shipping Lines (Vinalines) following the Prime Minister’s approval of the firm’s equitization plan.

A Vinalines representative said the firm has met with some investors from Japan, Thailand and the Republic of Korea, such as Hyundai Motor, SK Holdings and Siam Cement Group, over share acquisition. Hyundai Motor has officially registered to participate in Vinalines’ equitization.

Vinalines will sell 34.8% of its chartered capital to strategic investors through its initial public offerings (IPOs) and share auctions, but many investors want to hold at least 49%. As a result, the share volume Vinalines has offered is not attractive enough to investors.

Some other investors want to cooperate with Vinalines to exploit seaports instead of merely joining the IPO, such as Oman’s State General Reserve Fund.

In addition, Vinalines last year signed a memorandum of understanding with Rent A Port N.V., a seaport investment and management firm of Belgium’s Ackermans & van Haaren Group, which allowed Rent A Port N.V. to purchase a 10% stake in Vinalines. The Belgian investor has hired PwC Vietnam Co., Ltd, to appraise Vinalines’ value.

According to some investors, requirements for enterprises that want to become strategic investors in Vinalines are tough. Investors operating in the same sector must have a minimum chartered capital of VND1 trillion, while the level for those outside the shipping sector is VND2 trillion. These figures are double those of the previous plan.

On June 20, the Government passed Vinalines’ equitization plan, which involves the sale of part of the State capital and the issuance of additional shares to increase its chartered capital. After the equitization, Vinalines will have chartered capital of more than VND14 trillion, including VND11.9 trillion of State capital.

The State will hold 65% of the chartered capital, while 14.8% of the shares will be sold to strategic investors and 2% to Vinalines’ employees and trade union.

Vinalines has plans to offer over 1.4 billion shares at a starting price of VND10,000 each in its IPO in September.

Dtinews/SGT