Ca Mau 1 power plant under the PetroVietnam Power Corporation. The company will offer 20 percent of its shares in an initial public offering (IPO) on January 31. (Photo: VNA)Hanoi (VNA) – The PetroVietnam Power Corporation (PV Power), a subsidiary of the VietnamNational Oil and Gas Group (PetroVietnam), will offer 20 percent of its shares in an initial public offering(IPO) on January 31.
The sale is part ofthe PV Power equitisation plan approved by the Prime Minister on December 8,2017, under which the State will reduce its stake in PV Power to51 percent after PV Power becomes a joint-stock company, said PV Power Chairman Ho Cong Ky at aworkshop in Hanoi on January 16.
More than 676million shares, equivalent to 28.88 percent of PV Power’s chartered capital, willbe sold to strategic investors, while the remaining shares, equivalent to 0.11percent of its chartered capital, will be sold to PV Power’s staff, he said.
PV Powerprioritises strategic investors who are owners of oil and gas fields and coalmines as they can provide fuels for the corporation’s electricity plants for along term, Ky stressed.
PV Power GeneralDirector Nguyen Xuan Hoa said the priority enables strategic investors to gainover 36 percent of PV Power’s chartered capital and have the veto power in thecouncil of shareholders.
The State’scapital in PV Power may decrease to below 51 percent after 2019 when thecorporation successfully concludes negotiations with international donors over therestructuring of loans for the Vung Ang 1 thermal power plant, he noted.
Hoa said theequitisation of PV Power has attracted attention from hundreds of investors,including electricity development investors that are more powerful than PVPower in terms of finance, human resources and capacity.
Owners of oil andgas fields and coal mines from Indonesia, Australia, Qatar and Saudi Arabiahave also been interested in the corporation’s shares.
Hoa informed theworkshop that PV Power has to date selected 30 qualified domestic and foreigninvestors for cooperation over the next 5-10 years.
Accordingto Decree No. 126/2017/ND-CP, strategic investors are required to make profitsin the last two years and hold on to PV Power shares for at least five years.
PV Power hasgiven priority to strategic investors who can allocate capital for the corporationto implement an array of thermal power projects in the time ahead, as well asthose who can improve its financial, personnel and technological managementcapacity and operate in electricity generation in order to, together with PVPower, ensure the supply of gas and coal for projects once domestic naturalresources decrease.
In this regard,Ky stressed that PV Power prioritises investors who promise to receive a numberof coal-fueled power projects invested by PetroVietnam.
He explained thatfollowing the equitisation, these power projects can only be handed over to PVPower for operation and maintenance through the council of shareholders.
PVPower was established in 2007 and it was fully-owned by PetroVietnam. Thecompany operates one coal-based thermal power plant, three gas-used thermalpower plants, and three hydropower plants. The annual production is more than4,208 megawatts — equal to 10 percent of the country’s total power output.-VNA
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