The State Capital Investment Company (SCIC) said it successfully soldcapital in 22 firms in the first quarter this year, earning 844 billionVND (39.25 million USD).
The sale was achieved at 3.3 times the book value.
HoangNguyen Hoc, SCIC Deputy General Director, attributed the achievement tomore flexible regulations related to divestment of State-ownedenterprises (SOEs), which came into effect following a governmentDecision in 2013.
After the decision to boost the process ofdivestment of non-core businesses at several SOEs was taken, the companyhad sold capital at 159 firms, earning 1.475 trillion VND (68.6 millionUSD), 2.5 times more than the book value.
According to Hoc, 12State-owned groups and corporations, such as the Vietnam Posts andCommunications Group, Vietnam Maritime Corp, Sai Gon Trading Corp, andthe Vietnam National Coal Mineral Industries Group also providedinformation to the SCIC and suggested it buy their non-core investmentsin the banking and insurance sectors.
Under the currentregulations, the SCIC will buy stakes divested from banks by other SOEs,but will limit its purchases to 5 percent or below of banks' charteredcapital.
The SCIC will make the purchase when SOEs fail to selltheir stakes below par value or book value, or fail to sell shares tobanks designated by the central bank. In case of a disagreement withSCIC, State-run groups and corporations can report to the Government andthe Ministry of Finance to find a solution.
The SCIC, which wasformed under a Government Decision in 2005 and is a Governmentshareholder in SOEs, is responsible for managing and investing Statecapital in various sectors, including financial services, banking,insurance, energy, manufacturing, and telecommunications.Transportation, consumer products and healthcare sectors also fall underits purview.
During the last nine years, SCIC has successfullysold capital in 746 enterprises, earning 7.202 trillion VND (334.97million USD), 2.3 times more than the book value.
Its totalassets reached 69 trillion VND (3.2 billion USD), increasing 13 times,compared with the time of its establishment in 2005. Its equity wasestimated to be over 31 trillion VND (1.44 billion USD), nine times overthat in 2005.-VNA
The sale was achieved at 3.3 times the book value.
HoangNguyen Hoc, SCIC Deputy General Director, attributed the achievement tomore flexible regulations related to divestment of State-ownedenterprises (SOEs), which came into effect following a governmentDecision in 2013.
After the decision to boost the process ofdivestment of non-core businesses at several SOEs was taken, the companyhad sold capital at 159 firms, earning 1.475 trillion VND (68.6 millionUSD), 2.5 times more than the book value.
According to Hoc, 12State-owned groups and corporations, such as the Vietnam Posts andCommunications Group, Vietnam Maritime Corp, Sai Gon Trading Corp, andthe Vietnam National Coal Mineral Industries Group also providedinformation to the SCIC and suggested it buy their non-core investmentsin the banking and insurance sectors.
Under the currentregulations, the SCIC will buy stakes divested from banks by other SOEs,but will limit its purchases to 5 percent or below of banks' charteredcapital.
The SCIC will make the purchase when SOEs fail to selltheir stakes below par value or book value, or fail to sell shares tobanks designated by the central bank. In case of a disagreement withSCIC, State-run groups and corporations can report to the Government andthe Ministry of Finance to find a solution.
The SCIC, which wasformed under a Government Decision in 2005 and is a Governmentshareholder in SOEs, is responsible for managing and investing Statecapital in various sectors, including financial services, banking,insurance, energy, manufacturing, and telecommunications.Transportation, consumer products and healthcare sectors also fall underits purview.
During the last nine years, SCIC has successfullysold capital in 746 enterprises, earning 7.202 trillion VND (334.97million USD), 2.3 times more than the book value.
Its totalassets reached 69 trillion VND (3.2 billion USD), increasing 13 times,compared with the time of its establishment in 2005. Its equity wasestimated to be over 31 trillion VND (1.44 billion USD), nine times overthat in 2005.-VNA
