Business
PV Oil proposal of large-scale state capital divestment proves attractive: Brokerage
The company has yet to succeed in selling stake to strategic investors.
PetroVietnam Oil (PV Oil)’s recent proposal for a large-scale state capital divestment would be a potential investment opportunity in the market, stated Bao Viet Securities Company (BVSC).
According to the divestment plan approved by Prime Minister Nguyen Xuan Phuc, state-run energy giant Vietnam National Oil and Gas Group (PVN) will own 35.1% of PV Oil’s charter capital, 20% of chartered capital to be placed in public auction and sell 44.72% of charter capital to strategic investors.
So far, PV Oil, Vietnam’s second largest petroleum distributor, has offered to sell 20% of its charter capital as prescribed in the initial public offering (IPO) for VND4.1 trillion (US$184 million) in proceeds, exceeding the government target of raising at least US$122 million. However, the company has yet to sell 45% of stake to strategic shareholders.
Through this deregulation process, PVOil is expected to raise a total of US$400 million.
A number of investors are interested in becoming strategic shareholders of the company, such as Vietjet, HD Bank, SK Energy (South Korea) and Idemitsu (Japan).
Nevertheless, due to a lack of time for the divestment procedures, PV Oil has failed to fulfill the state’s requirement of completing within four months. In the meantime, PV Oil has submitted the proposal of extending time for divestment to the government, ministries and departments but was not approved.
Thus, the company has yet to succeed in selling stake to strategic investors. PV Oil’s representatives stated that the company has drawn up the plan and reported large-scale divestment instead to PVN. On the UpCOM, PV Oil’s stock has increased for five consecutive sessions to VND15,400 VND (US$0.66) per share.
South Korea’s leading oil company SK Energy has become the latter’ second largest shareholder and is second only to PVN being the state capital representative with 80% stake.
Illustrative photo.
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So far, PV Oil, Vietnam’s second largest petroleum distributor, has offered to sell 20% of its charter capital as prescribed in the initial public offering (IPO) for VND4.1 trillion (US$184 million) in proceeds, exceeding the government target of raising at least US$122 million. However, the company has yet to sell 45% of stake to strategic shareholders.
Through this deregulation process, PVOil is expected to raise a total of US$400 million.
A number of investors are interested in becoming strategic shareholders of the company, such as Vietjet, HD Bank, SK Energy (South Korea) and Idemitsu (Japan).
Nevertheless, due to a lack of time for the divestment procedures, PV Oil has failed to fulfill the state’s requirement of completing within four months. In the meantime, PV Oil has submitted the proposal of extending time for divestment to the government, ministries and departments but was not approved.
Thus, the company has yet to succeed in selling stake to strategic investors. PV Oil’s representatives stated that the company has drawn up the plan and reported large-scale divestment instead to PVN. On the UpCOM, PV Oil’s stock has increased for five consecutive sessions to VND15,400 VND (US$0.66) per share.
South Korea’s leading oil company SK Energy has become the latter’ second largest shareholder and is second only to PVN being the state capital representative with 80% stake.
