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Market News

Petrolimex to sell 8 per cent stake

Friday, 04/01/2016 14:51

Petrolimex will increase its charter capital after selling stake to Japanese JX Nippon Oil & Energy Corporation. — Photo petrolimexhanoi

HA NOI (Biz Hub) — Vietnam National Petroleum Group (Petrolimex) will offer 103.5 million ordinary shares, or eight per cent of its stake, to the Japanese JX Nippon Oil & Energy Corporation, officials said.

Hosting the shareholders' meeting in Ha Noi on March 30, Petrolimex's Group Chairman Bui Ngoc Bao revealed the plan to issue more shares to increase the group's charter capital. The deal with JX was the first phase of this plan.

The price will not be lower than VND38,000 (US$1.7) per share. With this price, the company is expected to collect at least VND3.9 trillion (US$175 million), Bao said.

After the purchase, JX will receive more than 155 million preferential shares, where the shareholders do not have voting rights.

Bao said the deal with JX had been under negotiation for nearly two years. It had planned to sell 20 per cent of its stake to JX at first, but the figure was reduced to eight per cent due to existing difficulties in the market.

If the deal is approved by the group's shareholders, the capital earned after the sale will be partially used to restructure the finances of Petrolimex Singapore Pte. Ltd. in Singapore, which is reeling under losses of trillions of dong.

Earlier, Deputy Prime Minister Vu Van Ninh had approved the Ministry of Industry and Trade's plan to issue more shares and increase Petrolimex's charter capital.

The measure is considered part of the group's restructuring process. The group's current charter capital is VND10.7 trillion.

As of December 31, 2015, Petrolimex's total assets reached VND51 trillion. The company earned VND146 trillion in revenue and VND3.76 trillion in pre-tax profit. —VNS