State Capital Investment Corporation (SCIC), the Vietnamese government's investment arm, has decided to offload its entire stake at Vinaconex, one of Vietnam's leading construction and property development corporation, in the fourth quarter of 2018.
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The move is in line with the government's equitization scheme, in which SCIC is scheduled to divest its entire stake in Vinaconex in the 2017 - 2020 period.
By the end of 2017, SCIC failed to unload a 22% stake in Vinaconex.
Notably, there will be a foreign ownership limit at 49% at Vinaconex. The company's market capitalization currently stands at VND8.52 trillion (US$364.62 million).
In the first six months of 2018, Vinaconex recorded net revenue of VND4.35 trillion (US$186.11 million), up 4% year-on-year, of which the main sources of income were construction activities, real estate development and industrial production.
Moreover, the company's gross profit declined by 30% in the period to VND450 billion (US$19.25 million), resulting in its pre-tax profit of VND235 billion (US$10.05 million), down 38% year-on-year.
As of June 2018, Vinaconex's total assets reached VND20.17 trillion (US$862.87 million), down 7.2% compared to the beginning of the year, while the its payables were equivalent to 63% of the total asset value.
Vinaconex is expected to restructure its investment in 26 subsidiaries and 10 affiliates in the remaining months of the year.
